直销管理条例 Administration of Direct Selling Regulations

sue direct seller certificates to them after they pass the examination. No one may carry out direct selling activities without obtaining a direct seller certificate.

　　Direct selling enterprises shall not charge any fee for business training and examination on direct sellers.

　　No work unit and individual other than a direct selling enterprise may organize business training of direct sellers in any name.

　　Article 19　Instructors that conduct business training on direct sellers shall be official employees of a direct selling enterprise and shall meet the following conditions：

　　1. has worked in that enterprise for at least one year；

　　2. has a university undergraduate or higher level education and the relevant professional knowledge in law and marketing；

　　3. has no record of being subject to criminal penalty for wilful criminal offence； and

　　4. has no record of operation in major violation of law.

　　The direct selling enterprise shall issue a direct selling trainer certificate to the instructor that meets the provisions stipulated in the preceding paragraph and submit the list of the persons that have obtained the direct selling trainer certificate to the State Council department in charge of commerce for record filing. The State Council department in charge of commerce shall announce on the government website the list of the persons that have obtained a direct seller trainer certificate.

　　No foreigner may engage in the business training of direct sellers.

　　Article 20　Direct seller certificates and direct seller trainer certificates issued by direct selling enterprises shall be printed in the format specified by the State Council department in charge of commerce.

　　Article 21　Direct selling enterprises shall be responsible for the lawfulness of the business training of direct sellers， the orderliness of the training and the safety of the training venue.

　　Direct selling enterprises and their direct seller trainers shall be responsible for the lawfulness of the training contents of the business training of direct sellers.

　　The specific adm

inistration procedures on the business training of direct sellers shall be separately formulated by the State Council department in charge of commerce and the State Council administration for industry and commerce in conjunction with other relevant authorities.

　　PART FOUR　DIRECT SELLING ACTIVITIES

　　Article 22　Direct sellers shall comply with the following provisions when marketing products to consumers：

　　1. he shall produce his direct seller certificate and marketing contract；

　　2. he may not enter the premises of a consumer to market products in a forcible manner without the permission of the consumer， and shall discontinue the marketing activity and leave the premises of the consumer immediately upon the request of the consumer；

　　3. before closing a deal， he shall explain the goods return policy of the enterprise to the consumer in detail； and

　　4. after closing a deal， he shall provide the consumer with an invoice and a sales voucher containing such particulars as the goods return policy and the address and telephone number of the local service outlets of the direct selling enterprise.

　　Article 23　Direct selling enterprises shall mark prices on direct selling products and such prices shall be consistent with the product prices displayed at the service outlets. Direct sellers must market products to consumers at marked prices.

　　Article 24　Direct selling enterprises shall pay remuneration to direct sellers at least once a month. The remuneration payable to a direct seller by a direct selling enterprise shall be calculated exclusively on the basis of the income from the sales of products made by the direct seller directly to consumers. The total amount of the remuneration （including commissions， bonuses， rewards in all forms and other economic benefits） may not exceed 30% of the income from the sales of products made by the direct seller directly to consumers.

　　Article 25　Direct selling enterprises shall set up and implement a sound goods replacement and return system.

　　Consumers may， within 30 days of the purchase of a direct selling product that has not been unsealed， request to the direct selling enterprise and its branch or the local service outlet or to the direct seller that marketed the product for replacement or return of goods on the strength of the invoice or sales voucher issued by the direct selling enterprise. The direct selling enterprise and its branch， the local service outlet or the direct seller shall handle replacement or return of goods on the basis of the price marked on the invoice or sales voucher within seven days after the consumer has made the request for replacement or return of goods.

　　Direct sellers may， within 30 days of the purchase of a direct selling product that has not been unsealed， request to the direct selling enterprise and its branch or the local service outlet for replacement or return of goods on the strength of the invoice or sales voucher issued by the direct selling enterprise. The direct selling enterprise and its branch or the local service outlet shall handle replacement or return of goods on the basis of the price marked on the invoice or sales voucher within seven days after the direct seller has made the request for replacement or return of goods.

　　Where a consumer or direct seller requests replacement or return of goods in circumstances other than those stipulated in the preceding two paragraphs， the direct selling enterprise and its branch， the local service outlet or the direct seller shall handle replacement or return of goods in accordance with the provisions of the relevant laws or regulations or the stipulations in the contract.

　　Article 26　If a dispute over replacement or return of goods arises between a direct selling enterprise and a direct seller or between a direct selling enterprise together with its direct seller and a consumer， the former party shal

l bear the burden of proof.

　　Article 27　Direct selling enterprises shall bear joint and several liability for the direct selling acts of their direct sellers except where it can be proved that the direct selling acts of a direct seller are not related to the enterprise.

　　Article 28　Direct selling enterprises shall set up and implement a sound information filing and disclosure system in accordance with the provisions of the State Council department in charge of commerce and the State Council administration for industry and commerce.

　　The contents， methods and related requirements of the information filing and disclosure by direct selling enterprises shall be stipulated separately by the State Council department in charge of commerce and the State Council administration for industry and commerce.

　　PART FIVE　SECURITY DEPOSIT

　　Article 29　Direct selling enterprises shall open a dedicated account with a bank designated jointly by the State Council department in charge of commerce and the State Council administration for industry and commerce， and make a security deposit into the account.

　　At the time of establishment of a direct selling enterprise， the amount of security deposit shall be Rmb 20 million. After the direct selling enterprise has commenced operation， the amount of the security deposit shall be adjusted monthly to be maintained at 15% of the sales income from direct selling products of the direct selling enterprise in the previous month， but it may not exceed Rmb 100 million at maximum or be less than Rmb 20 million at minimum. The interests on the security deposit belong to the direct selling enterprise.

　　Article 30　The State Council department in charge of commerce and the State Council administration for industry and commerce may jointly decide to use the security deposit under any of the following circumstances：

　　1. failure of the direct selling enterprise to pay remuneration to direct sellers or refund direct sellers or consumers for returned goods without proper reason；

　　2. the direct selling enterprise is unable to pay remuneration to direct sellers or refund direct sellers and consumers for returned goods due to termination of operation， merger， dissolution， transfer or bankruptcy， etc.； or

　　3. refusal without proper reason by or inability of the direct selling enterprise to provide compensation where compensation shall be provided according to law for the loss caused to consumers due to problems with a direct selling product.

　　Article 31　Direct selling enterprises shall make up the amount of the security deposit to the level specified in Paragraph Two of Article 29 hereof within one month after the security deposit is used in accordance with Article 30 hereof.

　　Article 32　Direct selling enterprises may not use the security deposit to provide security for other parties， or to discharge its debts in violation of the provisions hereof.

　　Article 33　If a direct selling enterprise ceases to engage in direct selling activities， it may withdraw the security deposit from the bank on the strength of the document issued by the State Council department in charge of commerce and the State Council administration for industry and commerce.

　　Article 34　The State Council department in charge of commerce and the State Council administration for industry and commerce shall be jointly responsible for the daily supervision of security deposits.

　　The specific administrative procedures on the making， payment and use of security deposits shall be formulated separately by the State Coun

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