直销管理条例 Administration of Direct Selling Regulations

cil department in charge of commerce and the State Council administration for industry and commerce in conjunction with other relevant authorities.

　　PART SIX　SUPERVISION AND ADMINISTRATION

　　Article 35　The administration for industry and commerce is responsible for the daily supervision of direct selling e

nterprises and direct sellers and their direct selling activities. The administration for industry and commerce may adopt the following measures to carry out on-site inspection：

　　1. enter the relevant enterprise to conduct inspection；

　　2. require the relevant enterprise to provide the relevant documents， information and supporting materials；

　　3. inquire the relevant parties， interested parties and other relevant persons， and require them to provide the relevant materials；

　　4. inspect， reproduce， seal up or distrain the materials and illegal property of the relevant enterprise that are related to direct selling activities； and

　　5. examine the direct seller trainer certificate and the direct seller certificate of the relevant persons.

　　When the administration for industry and commerce conducts on-site inspection pursuant to the provision of the preceding paragraph， there shall be at least two inspectors and they shall produce their legal identity documents. If sealing up or distrainment is to be implemented， it must be approved by the principal responsible person of the administration for industry and commerce at the county level or higher.

　　Article 36　Where the administration for industry and commerce discovers that an enterprise has committed acts in violation of these Regulations during its implementation of daily supervision and administration， it may， upon the approval of the principal responsible person of the administration for industry and commerce at the county level or above， order the enterprise to suspend the relevant business activities.

　　Article 37　The administration for industry and commerce shall set up and announce a reporting telephone number to receive reports and complaints about acts that violate these Regulations， and shall investigate and handle such reports and complaints in a timely manner.

　　The administration for industry and commerce shall keep the identity of the informant confidential， and shall grant rewards to persons whose reports deserve credit in accordance with the relevant State provisions.

　　PART SEVEN　LEGAL LIABILITY

　　Article 38　If a relevant authority and its working personnel that implement regulation on direct selling enterprises， direct sellers and their direct selling activities approve an application that does not meet the conditions stipulated herein， or fail to perform their regulatory duties in accordance with the provisions hereof， administrative penalty shall be imposed on the person in charge that is directly responsible and other directly responsible persons. If the case constitutes a criminal offence， criminal liability shall be pursued in accordance with the law. The approval granted to the application that does not meet the conditions stipulated herein shall be revoked by the relevant authority that has granted such approval.

　　Article 39　If anyone， in violation of Articles 9 and 10 hereof， engages in direct selling activities without approval， the administration for industry and commerce shall order rectification， confiscate the direct selling products and the illegal sales income， and impose a fine of not less than Rmb 50，000 and not more than Rmb 300，000. If the case is serious， a fine of not less than Rmb 300，000 and not more than Rmb 500，000 shall be imposed， and the business shall be banned in accordance with the law. If the case constitutes a criminal offence， criminal liability shall be pursued in accordance with the law.

　　Article 40　If an applicant obtains the licence set under Articles 9 and 10 hereof by deception or bribery， the administration for industry and commerce shall confiscate the direct selling products and the illegal sales income， and impose a fine of not less than Rmb 50，000 and not more than Rmb 300，000， and the licence shall be revoked by the State Council department in charge of commerce and the applicant may not submit an application a

gain. If the case is serious， a fine of not less than Rmb 300，000 and not more than Rmb 500，000 shall be imposed， and the business shall be banned in accordance with the law. If the case constitutes a criminal offence， criminal liability shall be pursued in accordance with the law.

　　Article 41　If a direct selling enterprise violates Article 11 hereof， the administration for industry and commerce shall order rectification and impose a fine of not less than Rmb 30，000 and not more than Rmb 300，000. If it no longer meets the licensing conditions for direct selling business， its direct selling business licence shall be revoked by the State Council department in charge of commerce.

　　Article 42　If a direct selling enterprise， in violation of the provisions hereof， engages in direct selling business activities beyond the scope of direct selling products， the administration for industry and commerce shall order rectification， confiscate the direct selling products and the illegal sales income， and impose a fine of not less than Rmb 50，000 and not more than Rmb 300，000. If the case is serious， a fine of not less than Rmb 300，000 and not more than Rmb 500，000 shall be imposed， and the business licence of the branch of the direct selling enterprise that has illegal business conduct shall be revoked by the administration for industry and commerce， or the direct selling business licence of the direct selling enterprise shall be revoked by the State Council department in charge of commerce.

　　Article 43　If a direct selling enterprise and its direct sellers， in violation of the provisions hereof， have fraudulent and misleading publicity and marketing conduct， the administration for industry and commerce shall impose， on the direct selling enterprise， a fine of not less than Rmb 30，000 and not more than Rmb 100，000. If the case is serious， a fine of not less than Rmb 100，000 and not more than Rmb 300，000 shall be imposed， and the business licence of the branch of the direct selling enterprise that has illegal business conduct shall be revoked by the administration for industry and commerce， or the direct selling business licence of the direct selling enterprise shall be revoked by the State Council department in charge of commerce. The administration for industry and commerce shall impose， on the direct seller， a fine of not more than Rmb 50，000. If the case is serious， the direct selling enterprise shall be ordered to revoke his qualification as a direct seller.

　　Article 44　If a direct selling enterprise and its branches recruit direct sellers in violation of the provisions hereof， the administration for industry and commerce shall order rectification and impose a fine of not less than Rmb 30，000 and not more than Rmb 100，000. If the case is serious， a fine of not less than Rmb 100，000 and not more than Rmb 300，000 shall be imposed， and the business licence of the branch of the direct selling enterprise that has illegal business conduct shall be revoked by the administration for industry and commerce， or the direct selling business licence of the direct selling enterprise shall be revoked by the State Council department in charge of commerce.

　　Article 45　If anyone， in violation of the provisions hereof， engages in direct selling activities without obtaining a direct seller certificate， the administration for industry and commerce shall order rectification and confiscate the direct selling products and the illegal sales income， and may impose a fine of not more than Rmb 20，000. If the case is serious， a fine of not less than Rmb 20，000 and not more than Rmb 200，000 shall be imposed.

　　Article 46　If a direct selling enterprise conducts the business training of direct sellers in violation of the provisions hereof， the administration for industry and commerce shall order rectification， confiscate the illegal income and impose a fine of not less than Rmb 30，000 and not more than Rmb 100，000. If

the case is serious， a fine of not less than Rmb 100，000 and not more than Rmb 300，000 shall be imposed， and the business licence of the branch of the direct selling enterprise that has illegal business conduct shall be revoked by the administration for industry and commerce， or the direct selling business licence of the direct selling enterprise shall be revoked by the State Council department in charge of commerce. The administration for industry and commerce shall impose a fine of not more than Rmb 50，000 on the instructor. If the instructor is a direct seller trainer， the direct selling enterprise shall be ordered to revoke his qualification as a direct seller trainer.

　　If any work unit or individual other than a direct selling enterprise organizes business training of direct sellers， the administration for industry and commerce shall order rectification， confiscate the illegal income and impose a fine of not less than Rmb 20，000 and not more than Rmb 200，000.

　　Article 47　If a direct seller violates Article 22 hereof， the administration for industry and commerce shall confiscate the illegal sales income and may impose a fine of not more than Rmb 50，000. If the case is serious， the direct selling enterprise shall be ordered to revoke his qualification as a direct seller， and a fine of not less than Rmb 10，000 and not more than Rmb 100，000 shall be imposed on the direct selling enterprise.

　　Article 48　If a direct selling enterprise violates Article 23 hereof， the matter shall be handl

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