直销管理条例 Administration of Direct Selling Regulations

国务院令第443号

（Promulgated by the State Council on and effect as of 1 December 2005.）

颁布日期：20050823 　实施日期：20051201 　颁布单位：国务院

　　PART ONE　GENERAL PROVISIONS

　　Article 1　These Regulations have been formulated in order to standardize the acts of direct selling， strengthen the regulation of direct selling， prevent fraud and protect the lawful rights and interests of consumers and public interests.

　　Article 2　Direct selling activities in the People‘s Republic of China shall comply with these Regulations.

　　The scope of direct selling products shall be determined and announced by the State Council department in charge of commerce in conjunction with the State Council administration for industry and commerce in accordance with the development of the direct selling industry and consumer demands.

　　Article 3　For the purposes of these Regulations， the term “direct selling” means a form of distribution by which a direct selling enterprise recruits direct sellers to directly market products to end consumers （hereafter， the “consumers”） outside the fixed business premises.

　　For the purposes of these Regulations， the term “direct selling enterprises” means enterprises that have been approved in accordance with the provisions hereof to sell products by way of direct selling.

　　For the purposes of these Regulations， the term “direct sellers” means persons that directly market products to consumers outside the fixed business premises.

　　Article 4　An enterprise established in the People‘s Republic of China （hereafter， an “enterprise”） may apply in accordance with the provisions hereof to become a direct selling enterprise that sells the products produced by itself or by its parent company or holding company by way of direct selling.

　　Direct selling enterprises may obtain trading right and distribution right in accordance with the law.

　　Article 5　Direct selling enterprises and their direct sellers may not have fraudulent and misleading publicity and marketing acts when engaging in direct selling.

　　Article 6　The State Council department in charge of commerce and the State Council administration for industry and commerce shall， according to their respective duties and the provisions hereof， be responsible for implementing regulation of direct selling enterprises and direct sellers and their direct selling activities.

　　PART TWO　ESTABLISHMENT OF AND CHANGE IN DIRECT SELLING ENTERPRISES AND THEIR BRANCHES

　　Article 7　To apply to become a direct selling enterprise， the following conditions shall be met：

　　1. the investor has good business reputation and no record of operation in major violation of law in the five consecutive years prior to the application； in the case of a foreign investor， it shall also have at least three years of experience in direct selling activities outside China；

　　2. the paid-up registered capital is not less than Rmb 80 million；

　　3. the security deposit has been fully paid to the designated bank in accordance with the provisions hereof； and

　　4. an information filing and disclosure system has been set up as required.

　　Article 8　To apply to become a direct selling enterprise， an application form shall be completed， and the following application documents and information shall be submitted：

　　1. materials proving that the conditions set out in Article 7 hereof are met；

　　2. the articles of association of the enterprise and， in the case of a Sino-foreign equity or cooperative joint venture， the contract of the equity or cooperative joint venture；

　　3. the marketing plan report， including a service outlet plan for the direct selling area prepared in accordance with Article 10 hereof and approved by the local people‘s government at the county level or above；

　　4. product descriptions that

meet the State standards；

　　5. sample of the marketing contract to be signed with direct sellers；

　　6. the capital verification report issued by an accounting firm； and

　　7. the agreement between the enterprise and the designated bank on the use of security deposit in accordance with the provisions hereof.

　　Article 9　An applicant shall submit its application to the State Council department in charge of commerce through the department in charge of commerce of the province， autonomous region or municipality directly under the central government in which it is located. The department in charge of commerce of the province， autonomous region or municipality directly under the central government shall submit the application documents and materials to the State Council department in charge of commerce within seven days of receipt of the same. The State Council department in charge of commerce shall， within 90 days of receipt of the complete application documents and materials， make a decision on whether or not to approve the application after soliciting the opinion of the State Council administration for industry and commerce. If the application is approved， the State Council department in charge of commerce shall issue a direct selling business licence.

　　The applicant shall， on the strength of the direct selling business licence issued by the State Council department in charge of commerce， apply to the administration for industry and commerce for change of registration in accordance with the law.

　　When conducting examination and issuing direct selling business licences， the State Council department in charge of commerce shall consider such factors as national security， public interests and the development of the direct selling industry.

　　Article 10　To engage in direct selling activities， a direct selling enterprise must establish a branch in the provinces， autonomous regions and municipalities directly under the central government in which it intends to carry out such activities to be responsible for the direct selling business in that administrative region （hereafter， a “branch”）。

　　A direct selling enterprise shall set up service outlets in the areas where it engages in direct selling activities to facilitate consumers and direct sellers as well as to satisfy their requirement to be informed of product prices and to return or exchange goods and to provide other services by the enterprise according to law. The establishment of service outlets shall meet the requirements of the local people‘s government at the county level or above.

　　To apply to establish a branch， a direct selling enterprise shall provide supporting documents and information that meet the conditions stipulated in the preceding paragraphs， and shall submit an application in accordance with the procedure stipulated in Paragraph One of Article 9 hereof. Upon obtaining approval， it shall complete registration with the administration for industry and commerce in accordance with the law.

　　Article 11　If a major change of the matters listed in Article 8 hereof occurs in a direct selling enterprise， the direct selling enterprise shall apply to the State Council department in charge of commerce for approval in accordance with the procedure stipulated in Paragraph One of Article 9 hereof.

　　Article 12　The State Council department in charge of commerce shall announce the list of direct selling enterprises and their branches on the government website， and update the same in a timely manner.

　　PART THREE　RECRUITMENT AND TRAINING OF DIRECT SELLERS

　　Article 13　Direct selling enterprises and their branches may recruit direct sellers. No work unit or individual other than a direct selling enterprise and its branches may recruit direct sellers.

　　The legitimate marketing activities of direct sellers may not be investigated and handled as unlicensed business.

　　Article 14　Direct selling enterprises and their branches may not publish any advertisement that advertises the sales remuneration of direct sellers， or require payment of fees or purchase of goods as the conditions of becoming a direct seller.

　　Article 15　Direct selling enterprises and their branches may not recruit the following persons to be direct sellers：

　　1. persons under the age of 18；

　　2. persons that have no or limited capacity for civil acts；

　　3. enrolled full-time students；

　　4. teachers， medical practitioners， civil servants and military personnel in active service；

　　5. official employees of the direct selling enterprise；

　　6. foreigners； and

　　7. persons that are forbidden by laws or administrative regulations to hold concurrent posts.

　　Article 16　A direct selling enterprise and its branches shall sign a marketing contract with every direct seller they recruit， and shall ensure that the direct sellers carry out direct selling activities only in areas where a service outlet has been established within the administrative region of the province， autonomous region or municipality direct under the central government in which one of its branches is located. Personnel that have not signed a marketing contract with a direct selling enterprise or its branch may not carry out direct selling in any manner.

　　Article 17　Direct sellers may terminate a marketing contract any time within 60 days after signing it； after 60 days， the direct seller shall give 15 days‘ notice to the direct selling enterprise if he wants to terminate the marketing contract.

　　Article 18　A direct selling enterprise shall conduct business training and examination on the direct sellers it intends to recruit， and shall is

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