On direct marketing enterprise penalties of approach views

Procedures and formalities relating to the application. The direct management regulations (hereinafter the "regulations"): the applicant shall expressly provided by the competent authorities of the locality Commerce commercial administrative departments under the State Council, the State Department responsible commercial decision to approve or not, and to approve the enterprise issuing the direct selling business license. The applicant is allowed to change registration law. Direct marketing enterprise must be engaged in direct marketing activities of the provinces to establish branches, and meet the requirements of the service network. Direct marketing enterprise applications for the establishment of branches, should provide supporting documents and information, in accordance with the submission of applications and registration.

Unauthorized engaged in direct marketing activities of the enterprise, industrial and commercial administrative departments ordered corrective action and confiscation of the direct marketing products and illegal sales, Office 5 million to 30 million Yuan; serious cases, 30 million to 50 million in fines, and legally banned; the Constitution crime, legally investigates the legal responsibility. The applicant through deception, bribery and other means of direct selling business, branch offices, service network set up, the confiscation of the direct selling products and illegal sales, Office 5 million to 30 million yuan in fines, revocation of its licence, the applicant shall then apply; if the circumstances are serious, 30 to 50 million in fines, and legally banned; the Constitution crime, legally investigates the legal responsibility.

About important changes to the application materials. The Ordinance provides for direct selling companies in the application materials (commercial credit, paid-up registered capital and deposits, reporting and disclosure of information), articles, market planning report, in line with national standards for product descriptions and marketing contract samples, verification reports, and banks use security deposit agreement in the event of a major change, it shall pass to the competent authorities of the State Department of Commerce. Violation of this provision, the industrial and commercial administrative departments ordered corrective action and 3 million to 30 million yuan in fines; no longer meets the conditions of direct selling business license, revoke the business license for direct selling.

On product management and marketing campaigns. The regulations expressly provide, direct selling enterprises out of direct marketing product range in the direct sales business, industrial and commercial administrative departments ordered corrective action and confiscation of the direct marketing products and illegal sales revenue, and $ to 30 $ fine; if the circumstances are serious, 30 to 50 million in fines, revocation has illegal acts of direct selling enterprises Branch Office MLM business, until revocation of the direct selling business license of enterprise. Direct selling company and its direct members in violation of the provisions of the Ordinance, deceptive, misleading, publicity and marketing, Office MLM business to 3 million to $ 's fine; if the circumstances are serious, 10 million to 30 million yuan in fines, revocation has illegal acts of direct selling enterprises Branch Office MLM business, until revocation of the direct selling business license of enterprise. 4 pips spread on direct sales shall be fined not more than 5 million Yuan; serious cases, their direct sales staff qualifications.

About direct marketing companies direct marketing Council recruitment and training. Direct marketing enterprises and their branches in violation of the provisions by the recruitment of industrial and commercial administrative departments ordered corrective action and 3 million to $ fine; if the circumstances are serious, 10 million to 30 million yuan in fines, revocation has illegal acts of direct selling enterprises Branch Office MLM business, until revocation of the direct selling business license of enterprise. Has not obtained a certificate of salesmen and engaged in direct marketing activities, industrial and commercial administrative departments ordered corrective action and confiscation of the direct marketing products and illegal sales, may place fine of 2 million Yuan; serious cases, Office 2 million to 20 million in fines.

Direct selling company in violation of the provisions for direct sales, business training, industrial and commercial Administrative Department of correction, confiscation illegal obtained, 3 million to $ fine; if the circumstances are serious, 10 million to 30 million yuan in fines, revocation has illegal acts of direct selling enterprises Branch Office MLM business, until revocation of the direct selling business license of enterprise; on the teaching staff, the Office shall be fined not more than 5 million Yuan, is the direct sales trainers, the revocation of their direct sales trainers qualifications. Direct Enterprise outside the organizational units and individual members of the direct selling business training, industrial and commercial administrative departments ordered corrective action and confiscation of illicit proceeds, to $ 2 million.

About direct sales marketing staff. Direct selling member exists without consent is not forced to sell a product, produce direct member card and marketing contracts, contract before introduction to the consumer, after the return system did not provide proof of sale to consumers, and other situations, the business sector, confiscate the illegal sales, may place fine of 5 million Yuan; serious cases, their direct sales staff qualifications, and on direct marketing enterprise Department to $ 1 million fine. Direct marketing enterprise should direct product labelled product price, the price and service outlets displaying the price of the product shall be consistent. Direct sales staff must follow the marked price to sell products to consumers. Violation of this provision, in accordance with the relevant provisions of the price method.

With regard to remuneration. Direct selling companies should at least be paid monthly pay salesmen, remuneration can only follow the salesmen I sell products directly to consumers of income, total compensation shall not exceed the salesmen I direct to consumer sales revenue by 30%. Direct selling companies should establish and implement the perfect replacement and refund system. Direct marketing enterprise violates this provision, the industrial and commercial administrative departments ordered corrective action and 5 million to 30 million Yuan; serious cases, 30 million to 50 million in fines, revocation has illegal acts of direct selling enterprises Branch Office MLM business, until revocation of the direct selling business license of enterprise.

In addition, the Ordinance also provides for a direct marketing business is not conducted in accordance with the relevant provisions of the notification and disclosure of information from the industrial and commercial administrative departments ordered corrective action and a fine of 10 million Yuan; serious cases, Office 10 million to 30 million yuan in fines; the refusal to rectify, revoke the business license for direct selling. Direct selling companies should be in the State, the competent authorities and the State Department of business and commercial administrative departments jointly designated bank offering specialized accounts, deposits. Direct marketing enterprise violates this provision, the industrial and commercial administrative departments ordered corrective action and a fine of 10 million; refusal to correct, at $-3

0 million in fines, revocation of a permit to operate its direct sales.

Finally, the regulation expressly provides that contravention of this Ordinance violations at the same time contrary to the prohibition of the pyramid scheme Ordinance, in accordance with the prohibition of the pyramid scheme Ordinance shall be punished.