Circular No. 10/2018/TT-BCT provides detailed regulations on certain provisions of the Government Decree No. 40/2018/NĐ-CP dated March 12, 2018, regarding the management of multi-level marketing business activities.

CIRCULAR

Detailed regulations on certain provisions of Decree No. 40/2018/NĐ-CP dated March 12, 2018 of the Government on management of direct selling activities

Pursuant to Decree No. 40/2018/ND-CP dated March 12, 2018 issued by the Government on the management of multilevel marketing activities;

Pursuant to Decree No. 98/2017/ND-CP dated August 18, 2017 issued by the Government on the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

At the proposal of the Director of the Competition and Consumer Protection Department;

The Minister of Industry and Trade issues this Circular detailing certain provisions of Decree No. 40/2018/ND-CP dated March 12, 2018 issued by the Government on the management of multilevel marketing activities.

This Circular stipulates the framework training program on legal knowledge about multi-level marketing sales; the examination, issuance, and revocation of confirmation of legal knowledge about multi-level marketing sales.

This Circular applies to training institutions for legal knowledge about multi-level marketing sales, multi-level marketing sales enterprises, individuals who need to examine and confirm their legal knowledge about multi-level marketing sales, and other organizations and individuals related thereto.

Article 3. Framework for Training Programs on Legal Knowledge About Multilevel Marketing

The framework training program on legal knowledge about multi-level marketing sales (hereinafter referred to as the training program) issued by the training institution for legal knowledge about multi-level marketing sales must ensure the following contents:

1. Duration of training: at least eight hours;

2. The framework for training programs on legal knowledge about multilevel marketing is prescribed according to the model set forth in Appendix 1 attached hereto.

The application for examination and confirmation of legal knowledge about multi-level marketing sales shall be carried out according to the model attached as Appendix 2 to this Circular.

The Department of Competition and Consumer Protection organizes or authorizes in writing the training institution for legal knowledge about multi-level marketing sales to organize examination sessions for legal knowledge about multi-level marketing sales according to the following procedures:

2. Develop a plan regarding time, location, and method of examination.

3. Announce the examination plan.

4. Organize the examination.

5. Evaluate the examination results.

6. Announce the examination results.

1. The examination of legal knowledge about multi-level marketing sales is conducted in essay or multiple-choice format for a minimum duration of 60 minutes.

2. The examination score is graded on a scale of 100 points, with a score below 90 points for multiple-choice tests and below 75 points for essay tests being considered unsatisfactory.

1. Confirmation of legal knowledge about multi-level marketing sales is issued according to the model attached as Appendix 3 to this Circular for those who meet the requirements stipulated in Clause 2, Article 39 of Decree No. 40/2018/NĐ-CP dated March 12, 2018 of the Government on management of direct selling activities.

2. In cases where the confirmation of legal knowledge about multi-level marketing sales is lost, torn, or destroyed, the Department of Competition and Consumer Protection will reissue the confirmation without requiring the applicant to complete the legal knowledge training course again.

1. The Department of Competition and Consumer Protection will revoke the confirmation of legal knowledge about multi-level marketing sales in the following cases:

a) Discovery of false information in the registration form for examination of those who have been granted confirmation;

b) Multi-level marketing enterprises ceasing their multi-level marketing activities;

c) When the person who has been granted the confirmation of legal knowledge about multi-level marketing sales terminates their labor contract or training contract with the multi-level marketing sales enterprise. The multi-level marketing sales enterprise is responsible for notifying the Department of Competition and Consumer Protection when terminating the labor contract or training contract with the person who has been granted the confirmation of legal knowledge about multi-level marketing sales.

2. Procedures and formalities for revoking confirmation of legal knowledge about multi-level marketing sales:

a) Within ten working days from the occurrence of the cases specified in Clause 1 of this Article, the Department of Competition and Consumer Protection issues and sends the decision to revoke the confirmation of legal knowledge about multi-level marketing sales to the enterprise. The confirmation of legal knowledge about multi-level marketing sales ceases to be effective from the date the Department of Competition and Consumer Protection issues the decision to revoke.

b) The Department of Competition and Consumer Protection is responsible for publishing on its electronic information website and the Ministry of Industry and Trade the revocation of the confirmation of legal knowledge about multi-level marketing sales of each multi-level marketing sales enterprise.

Article 9. Effective Date

1. This Circular takes effect from July 15, 2018.

2. This Circular abolishes Circular No. 24/2014/TT-BCT dated July 30, 2014 of the Minister of Industry and Trade detailing the implementation of certain provisions of Decree No. 42/2014/NĐ-CP dated May 14, 2014 of the Government on management of multi-level marketing sales activities.

Article 10. Implementation Organization

2. Organizations and individuals related thereto are responsible for implementing this Circular and submitting comments and suggestions to the Ministry of Industry and Trade for guidance and resolution of arising difficulties and obstacles.