The Ministry of Industry and Trade is continuing to perfect the legal framework for managing multi-level marketing activities by developing and promulgating a new Decree to replace current Decrees.
According to a representative of the National Competition Commission (Ministry of Industry and Trade), the new Decree is considered necessary to improve the legal framework and overcome the limitations of Decree No. 40/2018/ND-CP and Decree No. 18/2023/ND-CP in the context of digital transformation and the policy of creating favorable legal environment for people and businesses.
In particular, this Decree aims to strengthen consumer protection and social security against sophisticated fraud models disguised as multi-level marketing. At the same time, the issuance of the new Decree also aims to ensure consistency with the Law on Consumer Protection 2023 and new regulations on decentralization and delegation of authority.
The representative of the National Competition Commission said that the new Draft Decree proposes a notable amendment and supplement such as: Regarding the concept of multi-level marketing business, the Decree will clarify whether this model is determined according to the system of participants of the multi-level marketing enterprise or determined according to the system of downlines of multi-level marketing participants, at the same time, regulations on the form of multi-level marketing participation contracts will also be adjusted to facilitate businesses and be consistent with the policy of simplifying business regulations.
The draft also focuses on improving the practicality of basic training activities for multi-level marketing participants, ensuring that learners have a solid grasp of knowledge to have a correct and complete understanding when participating in multi-level marketing activities. Along with that, the draft proposes to increase the financial capacity of enterprises registering for multi-level marketing activities by increasing the deposit level from 10 billion to 20 or 50 billion VND.
In addition, the Draft Decree also adds provisions on the operating conditions of multi-level marketing enterprises in localities to improve the effectiveness of state management, especially in areas with many participants; adds provisions on the repurchase of multi-level marketing registration certificates to prevent the buying and selling of licenses, and provisions adds on the responsibilities of multi-level marketing participants to guide behavior, ensure exemplary behavior, and enhance the responsibility of high-level multi-level marketing participants.
To implement administrative procedure reform, the draft Decree will remove the procedure of Notifying changes to the List of goods traded under the multi-level marketing method and replace the procedure of checking and granting confirmation of legal knowledge on multi-level sales with a knowledge testing mechanism. The time for processing administrative procedures will also be shortened by 50%.
In addition, the Ministry of Industry and Trade proposed decentralizing many tasks to the provincial level. These include tasks: recognition training programs on legal knowledge of multi-level marketing; testing knowledge of legal knowledge of multi-level marketing; testing knowledge of local focal points; revoking confirmation of legal knowledge of multi-level marketing and confirmation of knowledge of local focal points; inspecting and supervising the activities of training facilities on legal knowledge of multi-level marketing and notifying the termination of multi-level marketing activities.
Source: https://baolaocai.vn/bo-cong-thuong-tiep-tuc-hoan-thien-hanh-lang-phap-ly-ve-quan-ly-hoat-dong-da-cap-post648167.html
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