Circular No. 12/2023/TT-BCT amends and supplements some articles of Circular No. 10/2018/TT-BCT dated May 24, 2018, issued by the Minister of Industry and Trade detailing certain provisions of Decree No. 40/2018/NĐ-CP dated March 12, 2018, of the Government on the management of direct selling business activities.

CIRCULAR

Amending and supplementing some articles of Circular No. 10/2018/TT-BCT dated May 24, 2018 issued by the Minister of Industry and Trade detailing certain provisions of Decree No. 40/2018/NĐ-CP dated March 12, 2018 of the Government on the management of multi-level marketing business activities.

detailing certain provisions of Decree No. 40/2018/NĐ-CP dated March 12, 2018 of the Government on the management of multi-level marketing business activities.

Decree No. 40/2018/NĐ-CP dated March 12, 2018 of the Government on the management of multi-level marketing business activities (hereinafter referred to as Decree No. 40/2018/NĐ-CP);

No. 18/2023/NĐ-CP dated April 28, 2023 of the Government

amending and supplementing some articles of Decree No. 40/2018/NĐ-CP of the Government on the management of multi-level marketing business activities (hereinafter referred to as Decree No. 18/2023/NĐ-CP).

On the basis of Decree The Minister of Industry and Trade issues this Circular to amend and supplement some articles of Circular No. 10/2018/TT-BCT dated May 24, 2018 issued by the Minister of Industry and Trade detailing certain provisions of Decree No. 40/2018/NĐ-CP dated March 12, 2018 of the Government on the management of multi-level marketing business activities. Article 1. Amending and supplementing some articles of Circular No. 10/2018/TT-BCT dated May 24, 2018 issued by the Minister of Industry and Trade detailing certain provisions of Decree No. 40/2018/NĐ-CP dated March 12, 2018 of the Government on the management of multi-level marketing business activities (hereinafter referred to as Circular No. 10/2018/TT-BCT) as follows: 40/2018/NĐ-CP dated January 12 the 3 Article 2. The receipt, handling of reflections and petitions from individuals and organizations concerning administrative regulations shall be carried out in accordance with Decree No. 20/2008/NĐ-CP dated February 14, 2008 of the Government on the receipt, handling of reflections and petitions from individuals and organizations concerning administrative regulations (amended and supplemented by Decree No. 48/2013/NĐ-CP dated May 14, 2013 on amending and supplementing certain articles of decrees related to administrative procedure control and Decree No. 92/2017/NĐ-CP dated August 7, 2017 on amending and supplementing certain articles of decrees related to administrative procedure control).8 "Article 1. Scope of Regulation: This Circular stipulates the framework for training programs on legal knowledge about multi-level marketing sales; the inspection, issuance, and revocation of confirmation of legal knowledge about multi-level marketing sales, and local liaison officer knowledge.";

Based on Decree No. 96/2022/NĐ-CP dated November 29, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

At the proposal of the Chairman of the National Competition Commission;

"Article 2. Applicability:

This Circular applies to training institutions providing legal knowledge about multi-level marketing sales, multi-level marketing enterprises, individuals seeking to be tested and confirmed for legal knowledge about multi-level marketing sales, local liaison officer knowledge, and other relevant organizations and individuals."

1. Amend and supplement Article 1 as follows:

"Article 5. Procedure for Organizing Knowledge Testing on Legal Aspects of Multi-Level Marketing Sales and Local Liaison Officer Knowledge

1. The National Competition Commission organizes or authorizes in writing training institutions providing legal knowledge about multi-level marketing sales to organize testing sessions on legal knowledge about multi-level marketing sales and local liaison officer knowledge according to the following procedures:

2. Amending and supplementing Article 2 as follows:

a) Checking the completeness and validity of the application forms for knowledge testing and confirmation according to Clause 1, Article 39 of Decree No. 40/2018/NĐ-CP amended and supplemented by Clause 28, Article 1 of Decree No. 18/2023/NĐ-CP.

c) Announcing the testing plan. d) Conducting the test. e) Evaluating the test results.

3. Amend and supplement Article 5 as follows:

2. The testing of legal knowledge about multi-level marketing sales and local liaison officer knowledge can be organized in the same session or in different sessions."

1. The examination on legal knowledge about multi-level marketing sales and local liaison officer knowledge shall be conducted in the form of essay or multiple-choice questions with a minimum duration of 60 minutes. 2. The score will be graded out of 100 points, with specific requirements as follows:

b) For the examination on local liaison officer knowledge, a score below 70 points for multiple-choice questions or below 50 points for essay questions is considered not meeting the requirements."

b) Develop a plan regarding time, location, and method of inspection.

"Article 7. Confirmation of Legal Knowledge about Multi-Level Marketing Sales and Local Liaison Officer Knowledge

e) Announce the inspection results.

Confirmation of legal knowledge about multi-level marketing sales and local liaison officer knowledge shall be carried out sequentially according to Form No. 21a and Form No. 21b promulgated together with Decree No. 18/2023/NĐ-CP"

4. AMENDING AND SUPPLEMENTING ARTICLE 6 AS FOLLOWS:

"Article 6. Forms of examination and evaluation of examination results

1. The National Competition Commission shall revoke the confirmation of legal knowledge about multi-level marketing sales and local liaison officer knowledge in the following cases:

a) For the examination of knowledge of laws on multi-level marketing, a score below 80 points for the multiple-choice format or below 65 points for the essay format is considered unsatisfactory.

c) The person who has been granted confirmation of legal knowledge about multi-level marketing sales terminates their labor contract or training contract; the person who has been granted confirmation of local liaison officer knowledge terminates their role as a local liaison officer with the multi-level marketing enterprise. The multi-level marketing enterprise is responsible for notifying the examination authority within two working days from the date of termination of the liaison officer relationship or training contract with the person who has been granted confirmation of legal knowledge about multi-level marketing sales or local liaison officer knowledge.

5. Amending and supplementing Article 7 as follows:

a) Within ten working days from the occurrence of the cases specified in Clause 1 of this Article, the National Competition Commission shall issue and send the decision to revoke the confirmation of legal knowledge about multi-level marketing sales or local liaison officer knowledge to the enterprise. The confirmation of legal knowledge about multi-level marketing sales or local liaison officer knowledge ceases to be effective from the date the National Competition Commission issues the revocation decision.

b) The National Competition Commission is responsible for publishing on the website of the examination authority the revocation of the confirmation of legal knowledge about multi-level marketing sales or local liaison officer knowledge of each multi-level marketing enterprise."

6. AMENDING AND SUPPLEMENTING ARTICLE 8 AS FOLLOWS:

"Article 8. Revocation of confirmation of knowledge of laws on multi-level marketing and confirmation of knowledge for local contacts

7. Amend the phrase "Department of Competition and Consumer Protection" in Clause 1, Article 10 to "National Competition Commission".

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;

2. Repeal Article 4 and Appendices 2 and 3 promulgated together with Circular No. 10/2018/TT-BCT.

2. Procedures and formalities for revoking confirmation of knowledge of laws on multi-level marketing and confirmation of knowledge for local contacts:

a) Within ten working days from the occurrence of the cases stipulated in Clause 1 of this Article, the National Competition Commission shall issue and send to the enterprise the decision on revoking the confirmation of knowledge of direct selling laws or the confirmation of knowledge for local contacts. The confirmation of knowledge of direct selling laws or the confirmation of knowledge for local contacts shall cease to be effective from the date the National Competition Commission issues the decision on revocation.

b) The National Competition Commission shall be responsible for publishing on the website of the agency that organized the examination for revoking the confirmation of knowledge of direct selling laws or the confirmation of knowledge for local contacts of each direct selling enterprise.

7. Amend the phrase "Department of Competition and Consumer Protection" in Clause 1 of Article 10 to read "National Competition Commission".

Article 2. Implementation clause

1. This Circular takes effect from July 21, 2023.

2. Repeal Article 4 and Appendix 2, Appendix 3 promulgated together with Circular No. 10/2018/TT-BCT.