Circular No. 24/2014/TT-BCT detailing the implementation of certain provisions of Decree No. 42/2014/NĐ-CP dated May 14, 2014 of the Government on the management of multi-level marketing activities

CIRCULAR

Implementing detailed provisions of certain articles of

DECREE No. 42/2014/NĐ-CP dated May 14, 2014 of the Government on management of multi-level marketing activities

On multi-level marketing activity management

Pursuant to Decree number 95/2012/NĐ-CP dated November 12, 2012 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 42/2014/NĐ-CP dated May 14, 2014 of the Government on management of multi-level marketing activities;

At the proposal of the Director of the Competition Administration Department,

The Minister of Industry and Trade issues this Circular detailing and guiding implementation of certain provisions of Decree No. 42/2014/NĐ-CP dated May 14, 2014 of the Government on management of multi-level marketing activities (hereinafter referred to as Decree No. 42/2014/NĐ-CP).

Article 1. Scope of Regulation and Applicability

1. This Circular details and guides the implementation of certain provisions related to multi-level marketing activities and management of multi-level marketing activities as prescribed in Decree No. 42/2014/NĐ-CP dated May 14, 2014 of the Government on management of multi-level marketing activities.

2. This Circular applies to multi-level marketing enterprises, participants in multi-level marketing activities, agencies issuing Certificates of Registration for Multi-Level Marketing Activities, Departments of Industry and Trade, and other relevant organizations, individuals involved in multi-level marketing activities.

Article 2. Documents for Application for Certificate of Registration for Multi-Level Marketing Activities

Documents for application for Certificate of Registration for Multi-Level Marketing Activities include:

1. An application form for Certificate of Registration for Multi-Level Marketing Activities according to Model M-01 attached hereto.

2. A certified copy of the Enterprise Registration Certificate or a printout from the National Enterprise Registration Information System or a certified copy of the Investment Certificate.

3. Documentation proving the statutory capital including one of the following: confirmation from a credit institution regarding the amount in the enterprise's account, audit results from an independent auditing organization regarding the current assets of the enterprise, appraisal certificate for tangible assets from a legally operating valuation organization in Vietnam, financial statements of the enterprise up to the date of submission or equivalent documentation.

4. List and certified copies of valid personal identification documents (ID card or passport for Vietnamese citizens; passport and temporary residence registration certificate issued by competent Vietnamese authorities for foreign residents in Vietnam; passport for non-resident foreigners) of persons mentioned in Clause 7, Article 7 of Decree No. 42/2014/NĐ-CP.

5. Two sets of documents related to multi-level marketing activities of the enterprise, including:

a) Sample of the multi-level marketing participation contract;

b) Reward program specifying conditions and methods for paying commissions, bonuses, and other economic benefits to multi-level marketing participants;

c) Basic training program;

d) Operating rules.

6. Documents related to goods sold through multi-level marketing methods of the enterprise, including:

a) Two lists of goods including information such as type, origin, packaging specifications, selling price (for multi-level marketing participants and customers), and points redeemable for goods sold through multi-level marketing methods;

b) Legal documents ensuring circulation conditions of goods in accordance with relevant laws;

c) Documentation related to product functions, usage methods, warranty policies, return and repurchase policies.

7. A certified copy of the Business Operation Permit or Business License or Confirmation Certificate or Professional Practice Certificate as stipulated by law in cases where business involves regulated products.

8. Original document confirming deposit of security money as prescribed in Article 16 of this Circular.

Article 3. Procedures for Issuing the Certificate of Registration for Multi-Level Marketing Activities

The Competition Management Agency shall be responsible for receiving, examining, and issuing the Certificate of Registration for Multi-Level Marketing Activities to enterprises applying for such activities. The procedures for issuing the Certificate of Registration for Multi-Level Marketing Activities are as follows:

1. Receiving applications

a) An enterprise applying for multi-level marketing activities shall submit one set of application files as prescribed in Article 2 of this Circular (accompanied by a CD-ROM or USB copy). The files may be submitted directly or sent via postal service to the Competition Management Agency's office.

b) Within five working days from the date of receipt of the application files, the Competition Management Agency shall check the completeness and validity of the files. In cases where the files are incomplete or invalid, the Competition Management Agency shall notify the enterprise to amend and supplement the files within thirty days.

c) Within thirty days from the date the Competition Management Agency notifies the enterprise to amend and supplement the files, if the enterprise does not amend and supplement the files as required, the Competition Management Agency shall return the files to the enterprise.

2. Examination of Application Files

a) After receiving complete and valid application files, the Competition Management Agency shall examine the files and issue an examination report within fifteen working days.

b) The contents of the examination include:

- Checking the sample documents provided by the enterprise to ensure compliance with legal regulations;

- Examining the contents of documents related to goods sold through multi-level marketing methods and documents related to the enterprise's multi-level marketing activities to ensure compliance with the provisions of Decree No. 42/2014/ND-CP.

3. Issuance of the Certificate of Registration for Multi-Level Marketing Activities

If the enterprise's application files meet the conditions stipulated in Decree No. 42/2014/ND-CP, the Competition Management Agency shall issue the Certificate of Registration for Multi-Level Marketing Activities according to Model M-03 attached to this Circular and return one copy of the documents specified in Clause 5 and Point a, Clause 6 of Article 2 of this Circular, certified by the Competition Management Agency, to the enterprise.

If the enterprise's application files do not fully meet the conditions stipulated in Decree No. 42/2014/ND-CP, the Competition Management Agency shall notify the enterprise in writing to amend and supplement the files. The time limit for amending and supplementing the files shall not exceed thirty days.

If the enterprise's application files do not meet the conditions stipulated in Decree No. 42/2014/ND-CP or if the enterprise fails to amend and supplement the files within the prescribed time limit, the Competition Management Agency shall return the files and notify the enterprise in writing, specifying the reasons for returning the files.

4. Within ten working days from the date of issuance of the Certificate of Registration for Multi-Level Marketing Activities, the Competition Management Agency shall be responsible for publishing on its electronic information website and sending copies of the Certificate of Registration for Multi-Level Marketing Activities along with copies of the documents specified in Clauses 2, 5, and 6 of Article 2 of this Circular to provincial Departments of Industry and Trade nationwide using one of the following methods:

a) Sending via postal service;

b) Facsimile;

c) Email.

Article 4. Amending and supplementing the Certificate of Registration for Multi-Level Marketing Activities

1. The dossier for amending and supplementing the Certificate of Registration for Multi-Level Marketing Activities includes:

a) A request for amending and supplementing the Certificate of Registration for Multi-Level Marketing Activities according to Model M-04 attached to this Circular;

b) The original Certificate of Registration for Multi-Level Marketing Activities issued by the Competition Administration Department;

c) Documents specified in Article 2 of this Circular related to the contents being amended and supplemented in the Certificate of Registration for Multi-Level Marketing Activities.

2. The procedures for amending and supplementing the Certificate of Registration for Multi-Level Marketing Activities shall be carried out in accordance with the provisions of Article 3 of this Circular.

Article 5. Reissuing the Certificate of Registration for Multi-Level Marketing Activities

1. In cases where the original Certificate of Registration for Multi-Level Marketing Activities is lost, torn, or destroyed, the enterprise submits a request for reissuing the Certificate of Registration for Multi-Level Marketing Activities according to Model M-05 attached to this Circular to the Competition Administration Department. The request may be submitted directly or sent through postal service.

2. Within 10 working days from the date of receipt of a valid request for reissuing the Certificate of Registration for Multi-Level Marketing Activities, the Competition Administration Department will reissue the Certificate of Registration for Multi-Level Marketing Activities for the enterprise.

Article 6. Extending the Certificate of Registration for Multi-Level Marketing Activities

1. The dossier for extending the Certificate of Registration for Multi-Level Marketing Activities includes:

a) A request for extending the Certificate of Registration for Multi-Level Marketing Activities according to Model M-06 attached to this Circular;

b) Documents specified in Clause 2, Clause 3, and Clause 4 of Article 2 of this Circular;

c) Documents specified in Clause 5, Clause 6, and Clause 7 of Article 2 of this Circular if there have been changes compared to the most recent amendment and supplementation of the Certificate of Registration for Multi-Level Marketing Activities;

d) A report on business operation results and compliance with laws within 5 (five) years from the date of issuance of the Certificate of Registration for Multi-Level Marketing Activities.

2. The procedures for extending the Certificate of Registration for Multi-Level Marketing Activities shall be carried out in accordance with the provisions of Article 3 of this Circular.

Article 7. Revoking the Certificate of Registration for Multi-Level Marketing Activities

1. The Certificate of Registration for Multi-Level Marketing Activities will be revoked in the cases stipulated in Clause 1 of Article 14 of Decree No. 42/2014/ND-CP.

2. Procedures for revoking the Certificate of Registration for Multi-Level Marketing Activities:

a) The Competition Administration Department issues a Decision to revoke the Certificate of Registration for Multi-Level Marketing Activities when one of the cases stipulated in Clause 1 of Article 14 of Decree No. 42/2014/ND-CP occurs and notifies the enterprise;

b) Within 10 working days from the date of receipt of the Decision to revoke the Certificate of Registration for Multi-Level Marketing Activities, the enterprise has the obligation to return the Certificate of Registration for Multi-Level Marketing Activities directly to the Competition Administration Department or send it through postal service;

c) Within 10 working days from the date of issuance of the Decision to revoke the Certificate of Registration for Multi-Level Marketing Activities, the Competition Administration Department is responsible for notifying all Provincial Departments of Industry and Trade throughout the country according to one of the methods specified in Clause 4 of Article 3 of this Circular and publishing on the electronic information website of the Competition Administration Department.

Article 8. Notification of Temporary Suspension of Multi-Level Marketing Sales Activities

1. The notification dossier for temporarily suspending multi-level marketing sales activities shall include:

a) A notification of temporary suspension of multi-level marketing sales activities according to Model M-07 attached as an appendix to this Circular;

b) The decision and minutes of the meeting regarding the temporary suspension of multi-level marketing sales activities by the board of members if it is a limited liability company with two or more members, by the owner of the company if it is a single-member limited liability company, by the general shareholders' meeting if it is a joint-stock company, or by the general partners if it is a partnership.

2. At least thirty days before the date of temporarily suspending multi-level marketing sales activities, the enterprise shall be responsible for:

a) Submitting the notification dossier stipulated in Clause 1 of this Article directly to the Competition Administration Department and the Departments of Industry and Trade where the enterprise conducts multi-level marketing sales activities, or sending it through postal service;

b) Publicly posting the notification of temporary suspension of multi-level marketing sales activities at the headquarters, branches, representative offices, business locations, and on the enterprise's website, and informing participants in multi-level marketing sales activities of the enterprise.

3. Within ten working days from the date of receiving a valid notification dossier for temporarily suspending multi-level marketing sales activities, the Competition Administration Department shall issue a document confirming receipt of the notification dossier, notify all Departments of Industry and Trade nationwide via one of the methods prescribed in Clause 4 of Article 3 of this Circular, and publish it on the Competition Administration Department’s website.

4. Before resuming multi-level marketing sales activities after the temporary suspension period, the enterprise has the obligation to submit a written notification according to Model M-08 attached as an appendix to this Circular to the Competition Administration Department. The notification document can be submitted directly or sent through postal service.

Within ten working days from the date of receiving the notification to resume multi-level marketing sales activities, the Competition Administration Department shall issue a document confirming receipt of the notification dossier, notify all Departments of Industry and Trade nationwide via one of the methods prescribed in Clause 4 of Article 3 of this Circular, and publish it on the Competition Administration Department’s website.

Article 9. Termination of Multi-Level Marketing Sales Activities

1. In case the enterprise voluntarily terminates multi-level marketing sales activities:

a) The notification dossier for terminating multi-level marketing sales activities shall include:

- A notification of termination of multi-level marketing sales activities according to Model M-09 attached as an appendix to this Circular;

- The original Certificate of Registration for Multi-Level Marketing Sales Activities;

- The decision and minutes of the meeting regarding the termination of multi-level marketing sales activities by the board of members if it is a limited liability company with two or more members, by the owner of the company if it is a single-member limited liability company, by the general shareholders' meeting if it is a joint-stock company, or by the general partners if it is a partnership;

- Three consecutive issues of a central newspaper where the enterprise has published the notification of termination of multi-level marketing sales activities.

b) Procedures and formalities for terminating multi-level marketing sales activities:

- The enterprise submits the notification dossier for terminating multi-level marketing sales activities directly to the Competition Administration Department or sends it through postal service, while simultaneously submitting the notification of termination of multi-level marketing sales activities directly to the Departments of Industry and Trade where the enterprise conducts multi-level marketing sales activities or sends it through postal service;

- The enterprise publicly posts the notification of termination of multi-level marketing sales activities at the headquarters, branches, representative offices, business locations, and on the enterprise's website, and informs participants in multi-level marketing sales activities of the enterprise;

Within ten working days from the date of receiving a valid notification dossier for terminating multi-level marketing sales activities, the Competition Administration Department shall issue a document confirming the notification dossier for terminating multi-level marketing sales activities, notify all Departments of Industry and Trade nationwide via one of the methods prescribed in Clause 4 of Article 3 of this Circular, and publish it on the Competition Administration Department’s website;

Within ninety days from the date the Competition Administration Department issues a document confirming the notification dossier for terminating multi-level marketing sales activities, the multi-level marketing sales enterprise shall be responsible for fulfilling its obligations towards participants in multi-level marketing sales activities as prescribed by law.

2. In case the enterprise terminates multi-level marketing sales activities due to the expiration or revocation of the Certificate of Registration for Multi-Level Marketing Sales Activities:

a) Within ten working days from the date the Certificate of Registration for Multi-Level Marketing Sales Activities expires (without extension) or is revoked, the enterprise shall be responsible for:

- Submitting the notification of termination of multi-level marketing sales activities directly to the Competition Administration Department and the Departments of Industry and Trade where the enterprise conducts multi-level marketing sales activities or sending it through postal service;

- Publicly posting the notification of termination of multi-level marketing sales activities at the headquarters, branches, representative offices, business locations, and on the enterprise's website, and informing participants in multi-level marketing sales activities of the enterprise;

- Publishing the notification of termination of multi-level marketing sales activities in three consecutive issues of a central newspaper.

b) Within ten working days from the date of receiving a valid notification of termination of multi-level marketing sales activities, the Competition Administration Department shall issue a document confirming the notification dossier for terminating multi-level marketing sales activities, notify all Departments of Industry and Trade nationwide via one of the methods prescribed in Clause 4 of Article 3 of this Circular, and publish it on the Competition Administration Department’s website.

c) Within ninety days from the date the Competition Administration Department issues a document confirming the notification dossier for terminating multi-level marketing sales activities, the multi-level marketing sales enterprise shall be responsible for fulfilling its obligations towards participants in multi-level marketing sales activities as prescribed by law.

Article 10. Notification of Multi-Level Marketing Activities

1. The notification dossier for multi-level marketing activities includes:

a) A notification of multi-level marketing activities according to Model M-10 attached as an appendix to this Circular;

b) A certified copy of the Certificate of Registration for Multi-Level Marketing Activities;

c) A confirmed copy by the enterprise of the documents specified in Clause 2, Article 2 and Clause 3, Article 3 of this Circular;

d) A certified copy of the Business Condition Compliance Certificate or Business License or Confirmation Letter or Professional Certificate as prescribed by law in cases where goods belong to regulated business sectors at localities (if applicable).

2. Enterprises shall submit the notification dossier for multi-level marketing activities directly to the Department of Industry and Trade at the location where the enterprise plans to operate, or send it via postal service.

3. Within five working days from the date of receiving the dossier, the Department of Industry and Trade shall be responsible for examining the completeness and validity of the notification dossier.

In case the dossier is complete and valid, the Department of Industry and Trade shall issue a confirmation receipt for the notification dossier to the enterprise according to Model M-11 or Model M-11A (in cases of amending or supplementing the notification dossier as stipulated in Clause 4 of this Article) within five working days from the date of receiving the dossier.

In case the dossier does not ensure completeness and validity, the Department of Industry and Trade shall notify the enterprise to amend and supplement the dossier. The deadline for amending and supplementing the dossier shall not exceed fifteen working days from the date the Department of Industry and Trade issues the notification. The Department of Industry and Trade shall return the dossier in cases where the multi-level marketing enterprise fails to amend or supplement the dossier within the aforementioned period.

The Department of Industry and Trade shall be responsible for sending a confirmation receipt for the notification dossier within five working days from the date of receiving the amended and supplemented dossier that is complete and valid.

4. Within ten working days from the date of changes related to the contents of the notification dossier for multi-level marketing activities as stipulated in Clause 1 of this Article, the enterprise shall be responsible for submitting a notification according to Model M-10A attached as an appendix to this Circular together with the changed documents directly to the Department of Industry and Trade at the location where the enterprise operates multi-level marketing activities, or send it via postal service. The procedures and formalities for notifying changes in the contents of the notification dossier shall be implemented according to the provisions of Clause 3 of this Article.

5. Within five working days from the date of issuing the confirmation receipt for the notification dossier, the Department of Industry and Trade shall be responsible for sending a copy of the confirmation receipt to the Competition Management Agency through one of the methods prescribed in Clause 4 of Article 3 of this Circular.

Article 11. Notification of Organizing Conferences, Seminars, and Training Sessions

1. The notification dossier for organizing conferences, seminars, and training sessions includes:

a) A notification of organizing conferences, seminars, and training sessions according to Model M-12 attached as an appendix to this Circular;

b) A certified copy of the Enterprise Registration Certificate or Investment Certificate;

c) Content, program, script, materials of the conference, seminar, or training session, and the expected number of participants;

d) List of speakers at the conference, seminar, or training session;

đ) A certified copy of the Trainer Certificate in cases where training participants in multi-level marketing activities is conducted as prescribed in Article 20 of Decree No. 42/2014/ND-CP;

e) Power of attorney in cases where the enterprise authorizes an individual to conduct training or organize conferences, seminars;

g) In cases where the conference, seminar, or training session includes content prescribed in point b, Clause 1, Article 18 of Decree No. 42/2014/ND-CP, the enterprise shall supplement:

- A list of products sold through multi-level marketing by the enterprise introduced at the conference, seminar, or training session;

- A certified copy of the confirmation letter on product advertising content at the conference, seminar issued by the competent state agency as prescribed by law, including one or more of the following documents: confirmation letter for organizing a food seminar for food products; registration form for organizing a cosmetic event for cosmetic products.

2. Enterprises shall submit the notification dossier for organizing conferences, seminars, and training sessions directly to the Department of Industry and Trade at the location where the enterprise plans to organize such activities, or send it via postal service.

3. Within five working days from the date of receiving the notification dossier for organizing conferences, seminars, and training sessions, the Department of Industry and Trade shall be responsible for:

a) Examining the completeness and validity of the notification dossier;

b) Reviewing and cross-checking the content of the notification dossier to ensure its consistency with the registration dossier for multi-level marketing activities already confirmed by the Competition Management Agency.

4. Within five working days from the date of receiving the dossier, the Department of Industry and Trade:

a) Shall issue a confirmation receipt for the notification dossier to the enterprise according to Model M-13 attached as an appendix to this Circular in cases where the dossier is complete, valid, and consistent with the registration dossier for multi-level marketing activities already confirmed by the Competition Management Agency;

b) Shall notify the enterprise in writing to amend and supplement the dossier in cases where the dossier does not ensure completeness, validity, or consistency with the registration dossier for multi-level marketing activities already confirmed by the Competition Management Agency. The deadline for amending and supplementing the dossier shall not exceed fifteen working days from the date the Department of Industry and Trade issues the notification.

The Department of Industry and Trade shall return the dossier in cases where the multi-level marketing enterprise fails to amend or supplement the dossier within the aforementioned period.

Article 12. Training for Participants in Multi-Level Marketing

1. After signing a contract with participants in multi-level marketing, the enterprise shall be responsible for training such participants according to the basic training program that has been confirmed by the Competition Administration and handed over to the enterprise in accordance with Clause 3, Article 3 of this Circular.

2. Within fifteen days from the end date of the training course, the enterprise shall be responsible for issuing a Basic Training Certificate on Multi-Level Marketing to participants in accordance with Model M-14 attached to this Circular.

After issuing the Basic Training Certificate on Multi-Level Marketing to participants, the enterprise shall be responsible for issuing Membership Cards to participants in accordance with Model M-02 attached to this Circular.

3. When there are changes related to the basic training program, the enterprise shall be responsible for updating such information for participants in multi-level marketing within thirty days from the date of confirmation of the changes in the basic training program by the Competition Administration through one of the following methods:

a) Organizing supplementary training;

b) Notifying participants in multi-level marketing through the enterprise's website and publicly posting at the main office, branches, representative offices, and business locations of the enterprise.

Article 13. Training for Trainers

1. The content of the training program for trainers includes the following basic knowledge:

a) Legal regulations governing multi-level marketing activities;

b) Legal regulations related to goods sold through multi-level marketing methods.

2. Based on actual training needs, the Competition Administration designates training institutions for multi-level marketing trainers based on meeting the following criteria:

- Having appropriate training functions and experience;

- Having facilities ensuring service for training activities.

3. After completing the training course and passing the examination as required, participants in the training courses designated under Clause 2 of this Article shall be issued a Completion Certificate of Knowledge Training on Multi-Level Marketing in accordance with Model M-15 attached to this Circular.

4. The procedure for designating training institutions for multi-level marketing trainers is carried out as follows:

a) The training institution submits one set of registration documents for multi-level marketing trainer training to the Competition Administration, either directly or via postal service. The set of documents includes:

- An application form for a training institution for multi-level marketing trainers;

- A certified copy of the Decision on Establishment or Business Registration Certificate showing the institution's training function;

- A capacity dossier including the following contents: introduction of training experience and capacity, facility conditions of the training institution, training program, training textbooks, list of lecturers (accompanied by scientific curriculum vitae certified by the managing authority and certified copies of qualifications), number of trainees suitable for the training capacity of the institution, plans for implementing training and issuing Completion Certificates of Knowledge Training on Multi-Level Marketing.

b) Within thirty days from the date of receiving complete and valid documents, the Competition Administration conducts inspections of the institution, evaluates the registration dossier based on the criteria stipulated in Clause 2 of this Article, and issues a Decision on Designation of a Training Institution for Multi-Level Marketing Trainers. In case of refusal to designate, the Competition Administration notifies the training institution in writing stating the reasons.

The Decision on Designation of a Training Institution for Multi-Level Marketing Trainers is valid for three years from the date of issuance.

5. Inspection and supervision of the operation of the training institution:

a) Before January 15th each year, the training institution shall be responsible for submitting a report summarizing the previous year's training activities for multi-level marketing trainers (including training results, examinations, and issuance of Completion Certificates of Knowledge Training on Multi-Level Marketing) to the Competition Administration;

b) Annually, the Competition Administration conducts inspections of training facilities and equipment, reviews procedures, and evaluates compliance with regulations on training, examinations, and issuance of Completion Certificates of Knowledge Training on Multi-Level Marketing by the training institution.

Depending on the inspection results, the Competition Administration may require the training institution to rectify violations or temporarily suspend the implementation of the Decision on Designation.

c) The Competition Administration revokes or suspends the Decision on Designation in the following cases: the training institution is dissolved; the training institution no longer operates within the designated scope; the training institution fails to rectify violations during the temporary suspension period or the violations cannot be rectified.

Article 14. Training Instructor Certificate

1. The Training Instructor Certificate shall be issued according to Model M-16 attached to this Circular.

2. The Training Instructor Certificate is only valid for training activities conducted by the enterprise that requested issuance of the certificate.

3. Procedures and formalities for issuing the Training Instructor Certificate:

a) A direct selling enterprise shall submit the application dossier for the Training Instructor Certificate directly at the Competition Administration or send it via postal service. The dossier includes:

- Application form for the Training Instructor Certificate;

- Certified copy of the labor contract or training contract between the direct selling enterprise and the person applying for the Training Instructor Certificate;

- List of persons applying for the Training Instructor Certificate, two (2) photographs (size 3x4 cm) of the applicant, along with a certified copy of the completion certificate of the knowledge course on direct selling issued by the training institution specified in Clause 3, Article 13 of this Circular.

b) Within ten working days from the date of receipt of a complete and valid dossier, the Competition Administration shall issue the Training Instructor Certificate based on the direct selling enterprise's request and publish it on the Competition Administration’s electronic information website.

In cases where the dossier does not meet completeness and validity requirements, the Competition Administration shall notify the enterprise to amend and supplement the dossier. The deadline for amending and supplementing the dossier shall not exceed ten working days from the date the Competition Administration issues the notification.

4. Revocation of the Training Instructor Certificate:

a) Circumstances for revoking the Training Instructor Certificate:

- Fraud in the application dossier for the Training Instructor Certificate;

- The Training Instructor conducting training activities contrary to legal regulations;

- The direct selling enterprise terminating the labor contract or training contract with the Training Instructor.

b) Procedures and formalities for revoking the Training Instructor Certificate:

- In cases where fraud is discovered in the application dossier for the Training Instructor Certificate or the Training Instructor conducts training activities contrary to legal regulations, the Competition Administration shall issue and send the decision to revoke the Training Instructor Certificate to the enterprise. Within fifteen working days from the date of receipt of the revocation decision, the enterprise shall be responsible for revoking the Training Instructor Certificate and submitting it directly to the Competition Administration or sending it via postal service. The Training Instructor Certificate ceases to be effective from the date the Competition Administration issues the revocation decision;

- In cases where the labor contract or training contract with the Training Instructor is terminated, the direct selling enterprise shall be responsible for revoking the Training Instructor Certificate and submitting it directly to the Competition Administration or sending it via postal service within fifteen working days from the date of termination of the contract.

c) The Competition Administration shall be responsible for publishing on its electronic information website the revocation of the Training Instructor Certificate of each direct selling enterprise.

5. Procedures and formalities for reissuing the Training Instructor Certificate:

a) In case there are changes in laws related to the contents stipulated in Clause 1, Article 13 of this Circular, the Competition Administration shall notify the direct selling enterprises to organize training and update knowledge for the Training Instructors and reissue the Training Instructor Certificate;

b) Procedures and formalities for reissuing the Training Instructor Certificate shall be carried out in accordance with the provisions of Clause 3 of this Article.

Article 15. Periodic Reports of Multi-Level Marketing Enterprises

1. Before July 15 and January 15 each year, enterprises shall be responsible for submitting consolidated reports on the results of multi-level marketing activities for six months and one year to the Competition Management Agency and the Department of Industry and Trade where the enterprise has notified its multi-level marketing activities in writing and through electronic data.

2. The periodic report submitted to the Competition Management Agency includes:

a) Information about the enterprise: name, main office address, business registration number, telephone, fax, email; number and date of issuance of the Certificate of Registration for Multi-Level Marketing Activities that have been issued, amended, or supplemented; branch and representative office addresses and business locations of the enterprise, and the name and telephone number of the contact person at localities where the enterprise organizes multi-level marketing activities;

b) Information about the results of the enterprise's multi-level marketing activities: revenue from multi-level marketing, statistics on multi-level marketing products, number of participants in multi-level marketing, commissions, bonuses, and other economic benefits paid to participants in multi-level marketing;

c) Number of meetings, seminars, and training sessions reported to each Department of Industry and Trade and confirmed by the Departments of Industry and Trade to contain the content prescribed in Clause 1 of Article 18 of Decree No. 42/2014/NĐ-CP;

d) Financial statements audited for the previous fiscal year for the six-month periodic report.

3. The periodic report submitted to the Department of Industry and Trade includes:

a) Information about the enterprise: name, main office address, business registration number, telephone, fax, email; number and date of issuance of the Certificate of Registration for Multi-Level Marketing Activities that have been issued, amended, or supplemented; branch and representative office addresses and business locations of the enterprise in the locality; name and telephone number of the contact person in the locality;

b) Information about the results of the enterprise's multi-level marketing activities in the locality: revenue from multi-level marketing, statistics on multi-level marketing products, number of participants in multi-level marketing, commissions, bonuses, and other economic benefits paid to participants in multi-level marketing.

Article 16. Confirmation of Deposit of Security Money

1. The confirmation document of security money deposit includes the following contents:

a) Information about the bank where the enterprise opens a security account;

b) Information about the enterprise making the security deposit, including: name, address, business registration number or investment certificate number, legal representative of the enterprise;

c) Content of the security deposit, including: security account number, amount of security deposit, time of deposit, principles for managing the security account as stipulated in Article 29 of Decree No. 42/2014/NĐ-CP.

2. In case of transferring the headquarters to another province or centrally-administered city, the multi-level marketing enterprise shall fulfill the security deposit according to Clause 1 of Article 29 of Decree No. 42/2014/NĐ-CP and provide a new confirmation document of security money deposit to the Competition Management Agency.

The Competition Management Agency issues a document allowing the multi-level marketing enterprise to withdraw the previously deposited security money after receiving the new confirmation document of security money deposit.

Article 17. Withdrawal of Security Money

1. After a period of 90 days from the date the Competition Management Agency issues the confirmation document of the notification of termination of multi-level marketing activities, the enterprise may submit a withdrawal request directly to the Competition Management Agency or send it via postal service.

2. The withdrawal request file includes:

a) A request form to release the security deposit according to Model M-17 attached to this Circular;

b) List of multi-level marketing participants up to the date of termination of multi-level marketing activities (name, ID card number or passport number, address, phone number, contract number for participation in multi-level marketing, date of signing the contract, member card number).

3. Acceptance of the withdrawal request file:

a) Within five working days from the date of receipt of the file, the Competition Management Agency shall be responsible for checking the completeness and validity of the multi-level marketing enterprise's withdrawal request file.

If the file does not ensure completeness and validity, the Competition Management Agency will notify the enterprise in writing to amend and supplement the file. The deadline for amending and supplementing the file shall not exceed ten working days from the date the Competition Management Agency issues the notification.

If the file ensures completeness and validity, the Competition Management Agency will publicly announce on its website regarding the termination of multi-level marketing activities and the enterprise's request to withdraw the security deposit.

b) Within thirty days from the date the Competition Management Agency publishes the above information, multi-level marketing participants have the right to notify the Competition Management Agency if the multi-level marketing enterprise has not fulfilled the obligations prescribed in Point b, Clause 2 of Article 16 of Decree No. 42/2014/NĐ-CP.

If there is no notification from multi-level marketing participants within the specified period, the multi-level marketing enterprise is considered to have fulfilled the obligations prescribed in Point b, Clause 2 of Article 16 of Decree No. 42/2014/NĐ-CP.

If the Competition Management Agency receives notifications from multi-level marketing participants within the specified period, it will collect these notifications and request the multi-level marketing enterprise to fulfill its obligations towards those participants. After fulfilling the obligations towards the participants, the multi-level marketing enterprise will notify the Competition Management Agency and attach confirmation from the participants.

c) The Competition Management Agency will issue a document approving the release of the security deposit for the multi-level marketing enterprise after the enterprise has fulfilled the obligations prescribed in Point b, Clause 2 of Article 16 of Decree No. 42/2014/NĐ-CP.

Article 18. Use of the Guarantee Deposit

1. In cases where a multi-level marketing enterprise terminates its multi-level marketing activities in accordance with Clause 1 of Article 16 of Decree No. 42/2014/ND-CP but fails to fully fulfill its obligations related to such activities and has a decision or judgment with legal effect from the competent authority regarding the resolution of disputes between the multi-level marketing enterprise and participants in multi-level marketing activities concerning those obligations, the multi-level marketing participants have the right to request the Competition Administration to use the guarantee deposit of the multi-level marketing enterprise to fulfill their obligations as stipulated in Clause 1 of Article 31 of Decree No. 42/2014/ND-CP.

2. Procedures and formalities for using the guarantee deposit;

a) The multi-level marketing participant referred to in Clause 1 of this Article shall submit directly to the Competition Administration or send via postal service a written request to use the guarantee deposit and certified copies of the decisions and judgments referred to in Clause 1 of Article 31 of Decree No. 42/2014/ND-CP.

b) Within ten working days from the date of receipt of the documents referred to in point a of this clause, the Competition Administration shall be responsible for checking the validity of these documents.

If the documents referred to in point a of this clause do not ensure validity, the Competition Administration shall notify in writing the person who made the request to amend and supplement them. The time limit for amendment and supplementation shall not exceed fifteen working days from the date the Competition Administration issues the notification.

c) If the documents referred to in point a of this clause ensure validity, the Competition Administration shall issue a document requesting the bank where the enterprise opened the guarantee deposit account to withdraw the guarantee deposit to fulfill the request of the multi-level marketing participant.

Article 19. Handling the guarantee deposit according to the provisions of Decree No. 110/2005/NĐ-CP dated August 24, 2005 of the Government on managing multi-level marketing activities

1. A business that has been granted a registration certificate for organizing multi-level marketing activities by the Department of Industry and Trade is permitted to withdraw the guarantee deposit in the following cases:

a) The business terminates multi-level marketing activities;

b) The business has been granted a registration certificate for multi-level marketing activities by the Competition Administration in accordance with Decree No. 42/2014/ND-CP.

2. Procedures and formalities for withdrawing the guarantee deposit in the case specified in point a of Clause 1 of this Article:

a) When terminating multi-level marketing activities, the multi-level marketing business shall be responsible for:

- Submitting a notice of termination of multi-level marketing activities directly to the Department of Industry and Trade or sending it via postal service;

- Publicly posting the notification of termination of multi-level marketing sales activities at the headquarters, branches, representative offices, business locations, and on the enterprise's website, and informing participants in multi-level marketing sales activities of the enterprise;

- Publishing the notification of termination of multi-level marketing sales activities in three consecutive issues of a central newspaper.

Within ninety days from the date of submission of the notice of termination of multi-level marketing activities, the multi-level marketing business shall be responsible for fulfilling all obligations towards multi-level marketing participants as prescribed by law.

b) After ninety days from the date of the notice of termination of multi-level marketing activities, the business may submit a withdrawal application directly to the Department of Industry and Trade or send it via postal service;

c) The withdrawal application includes:

- An application form for releasing the guarantee deposit according to Model M-17 attached to this Circular;

- The original Registration Certificate for Organizing Multi-Level Marketing Activities issued by the Department of Industry and Trade;

- A list of multi-level marketing participants up to the date of termination of multi-level marketing activities (name, ID card/passport number, address, phone number, sales agreement number, date of signing the sales agreement, member card number);

- Three consecutive issues of a central newspaper where the enterprise has published the notification of termination of multi-level marketing sales activities.

d) Receiving the withdrawal application:

Within five working days from the date of receiving the application, the Department of Industry and Trade shall be responsible for checking the completeness and validity of the multi-level marketing business's withdrawal application.

If the application does not ensure completeness and validity, the Department of Industry and Trade shall notify in writing the business to amend and supplement the application. The time limit for amending and supplementing the application shall not exceed ten working days from the date the Department of Industry and Trade issues the notification.

If the application ensures completeness and validity, the Department of Industry and Trade shall publicly announce on its electronic information website (or that of the provincial People's Committee) about the termination of multi-level marketing activities and the business's request to withdraw the guarantee deposit.

Within thirty days from the date the Department of Industry and Trade posts the above information, multi-level marketing participants have the right to notify the Department of Industry and Trade about the business's failure to fulfill its obligations as prescribed by law.

If there is no notification from multi-level marketing participants within the specified period, the multi-level marketing business shall be deemed to have fulfilled its obligations towards multi-level marketing participants as prescribed by law.

If notifications from multi-level marketing participants are received within the specified period, the Department of Industry and Trade shall collect these notifications and request the multi-level marketing business to fulfill its obligations towards those participants. After fulfilling the obligations towards participants, the multi-level marketing business shall notify the Department of Industry and Trade and attach confirmation from the participants.

e) The Department of Industry and Trade shall issue a document approving the release of the guarantee deposit for the multi-level marketing business after the business has fulfilled its obligations towards multi-level marketing participants as prescribed by law.

3. Procedures and formalities for withdrawing the guarantee deposit in the case specified in point b of Clause 1 of this Article:

a) After being granted a registration certificate for multi-level marketing activities by the Competition Administration in accordance with Decree No. 42/2014/ND-CP, the business may submit a withdrawal application directly to the Department of Industry and Trade or send it via postal service;

b) The withdrawal application includes:

- An application form for releasing the guarantee deposit according to Model M-17 attached to this Circular;

- The original Registration Certificate for Organizing Multi-Level Marketing Activities issued by the Department of Industry and Trade;

- A certified copy of the Registration Certificate for Multi-Level Marketing Activities issued by the Competition Administration.

c) Receiving the withdrawal application:

Within five working days from the date of receiving the application, the Department of Industry and Trade shall be responsible for checking the completeness and validity of the multi-level marketing business's withdrawal application.

If the application does not ensure completeness and validity, the Department of Industry and Trade shall notify in writing the business to amend and supplement the application. The time limit for amending and supplementing the application shall not exceed ten working days from the date the Department of Industry and Trade issues the notification.

The Department of Industry and Trade shall issue a document approving the release of the guarantee deposit for the multi-level marketing business within five working days from the date of receipt of a complete and valid application.

Article 20. Implementation

1. The Competition Administration, in accordance with its functions and tasks, shall be responsible for:

a) Implement the provisions of this Circular;

b) Guide and coordinate with the Departments of Industry and Trade of provinces and centrally governed cities, and other competent authorities to implement the provisions of this Circular.

2. The Departments of Industry and Trade of provinces and centrally governed cities shall be responsible for:

a) Implementing the responsibilities prescribed in this Circular;

b) Coordinating with the Competition Administration and other competent authorities to implement the provisions of this Circular.

Article 21. Effective Date

1. This Circular takes effect from September 15, 2014.

2. This Circular replaces Circular No. 19/2005/TT-BTM dated November 8, 2005 of the Minister of Trade guiding certain contents stipulated in Decree No. 110/2005/NĐ-CP dated August 24, 2005 of the Government on the management of multi-level marketing activities, and Circular No. 35/2011/TT-BCT dated September 23, 2011 of the Minister of Industry and Trade amending and supplementing certain contents regarding administrative procedures in Circular No. 19/2005/TT-BTM dated November 8, 2005 guiding certain contents stipulated in Decree No. 110/2005/NĐ-CP dated August 24, 2005 of the Government on the management of multi-level marketing activities.

3. In case of difficulties during implementation, relevant agencies, organizations, and individuals shall directly reflect to the Competition Administration for consideration and resolution within its authority, or report to the Ministry of Industry and Trade for resolution./.