MINISTRY OF INDUSTRY AND TRADE | SOCIAL REPUBLIC OF VIETNAM |
No. 10/2018/TT-BCT | Hanoi, May 24, 2018 |
CIRCULAR
ELABORATION OF DECREE NO. 40/2018 / ND-CP DATED MARCH 12, 2018 ON MANAGEMENT OF MULTI-LEVEL MARKETING ACTIVITIES
Pursuant to Decree No. 40/2018/ND-CP dated March 12, 2018 on management of multi-level marketing activities;
Pursuant to Decree No.98/2017/ND-CP dated August 18, 2017 on functions, tasks, powers and organizational structure of Ministry of Industry and Trade;
At the request of the Director General of Vietnam Competition Authority;
The Minister of Industry and Trade issued a Circular regulating some articles of the Decree No. 40/2018 / ND-CP dated March 12, 2018 on management of multi-level marketing activities.
Article 1. Scope
This Circular provides for framework of law training program on multi-level marketing; examination, granting and revocation of the certification of legal knowledge about multi-level marketing.
Article 2. Regulated entities
This Circular applies to establishments providing legal knowledge about multi-level marketing, multi-level marketing companies; persons who wish to obtain the certification of legal knowledge about multi-level marketing and other relevant organizations and individuals.
Article 3. Framework of training program on multi-level marketing laws
The framework of training program on multi-level marketing laws (hereinafter called "training program") promulgated by law training establishment on multi-level marketing must ensure the following contents:
1. Training duration: At least 8 hours;
2. The framework of law training program on multi-level marketing is stipulated in Appendix 1 issued together with this Circular.
Article 4. Application for examination and certification of legal knowledge about multi-level marketing
Application form for examination and certification of legal knowledge about multi-level marketing is provided in Appendix 2 issued together with this Circular.
Article 5. The process of examination on legal knowledge about multi-level marketing
The Vietnam Competition Authority shall organize or authorize in writing for establishments providing training in multi-level marketing laws to organize an exam of legal knowledge about multi-level marketing in accordance with the following process:
1. Check the completeness and validity of the applications for examination and certification of legal knowledge about multi-level marketing according to the provision of Clause 1, Article 39 of Decree No. 40/2018 / ND-CP dated March 12, 2018 on management of multi-level marketing activities.
2. Decide the time, location and examination method.
3. Announce the examination plan.
4. Organize the examination.
5. Grade the tests.
6. Announce the test results.
Article 6. Form of examination and evaluation of exam results
1. The test of legal knowledge about multi-level marketing is done in the form of a written test or multiple-choice test with a duration of at least 60 minutes.
2. Tests are graded on a scale from 1 to 100. A test is failed if the score is under 90 (for multiple-choice tests) or under 75 (for written tests).
Article 7. Certification of legal knowledge about multi-level marketing
1. Certification of legal knowledge about multi-level marketing (hereinafter referred to as “certification”) shall be issued according to the form in Appendix 3 of this Circular to those who meet the requirements prescribed in Clause 2, Article 39 of Decree No. 40/2018 / ND- CP dated March 12, 2018 on management of multi-level marketing activities.
2. In case the certificate is lost, damaged or otherwise destroyed, Vietnam Competition Authority shall re-grant the certificate that it has been granted and the applicant shall not need to retake legal knowledge training course on multi-level marketing.
Article 8. Revocation of the certification
1. Vietnam Competition Authority will revoke the certification in any of the following cases:
a) Fraudulent information is detected in the application for the certification;
b) The multi-level marketing company stops multi-level marketing activities;
c) The certification holder terminates his/her labor contract or training contract with the multi-level marketing company, in which case the multi-level marketing company shall send a notification to the Vietnam Competition Authority.
2. Procedures for revoking the certification
a) Within 10 working days from occurrence of any of the cases specified in Clause 1 of this Article, the Vietnam Competition Authority shall issue and send a decision to revoke the certification to the company. The certification shall be invalid from the date the Vietnam Competition Authority issued the decision of revocation.
b) The Vietnam Competition Authority shall post information about the multi-level marketing companies whose certifications are revoked on its website and the website of the Ministry of Industry and Trade.
Article 9. Effect
1. This Circular comes into effect since July 15, 2018.
2. This Circular annuls the Circular No. 24/2014/TT-BCT dated July 30, 2014 of the Minister of Industry and Trade providing for carrying out some articles of the Decree No. 42/2014/ND-CP dated May 14, 2014 on management of multi-level marketing activities.
Article 10. Conduct and implementation
1. The Vietnam Competition Authority shall, according to its function, have to implement the provisions of this Circular.
2. Organizations and individuals shall implement this Circular and send their feedbacks to the Ministry of Industry and Trade for receiving guidance for arising difficulties and problems.
| MINISTER |
APPENDIX 1
FRAMEWORK TRAINING PROGRAM IN LEGAL KNOWLEDGE ABOUT MULTI-LEVEL MARKETING ACTIVITIES
(Issued together with Circular No. 2018 / TT-BCT dated 2018 of the Minister of Industry and Trade)
I. OVERVIEW OF MULTI-LEVEL MARKETING ACTIVITIES
1.1. Concepts and characteristics of multi-level marketing
1.2. Developments of multi-level marketing in Vietnam and around the world
II. LEGISLATION ON MANAGEMENT OF MULTI-LEVEL MARKETING ACTIVITIES
2.1. Applicable legislative documents
2.2. Management authorities
2.3. Legal issues relating to multi-level marketing companies (regulations on business registration, issues to be complied with during operation, banned acts)
2.4. Legal issues relating to participants in multi-level marketing activities (contract signing, basic training, issuance of membership card, issues to be complied with during operation, banned acts)
2.5. Basic law provisions on goods permitted for sale through multi-level marketing
2.6. Handling violations for multi-level marketing companies, participants in multi-level marketing activities
III. PROFESSIONAL ETHICS OF MULTI-LEVEL MARKETING
3.1. Proper attitudes toward consumers
3.2. Code of conduct between companies and participants
3.3. Code of conduct among companies
IV. LEGISLATION ON CONSUMER PROTECTION
4.1. Legal overview of consumer protection
4.2. Consumers’ rights;
4.3. Companies’ liability to consumers (on information providing, warranty policy, product recall, etc.)
4.4. Penalties for violations against consumer protection laws
V. LEGISLATION ON ADVERTISING
5.1. Overview of advertising
5.1.1. The basic concepts
5.1.2. Applicable legislative documents
5.2. Notable advertising-related issues in multi-level marketing activities
5.2.1. Prohibited behavior in advertising activities
5.2.2. Advertising conditions
5.2.3. Rights and obligations of relevant entities in advertising activities
5.2.4. Advertising of food supplements and cosmetics
APPENDIX 2
REQUEST FOR GRANTING CERTIFICATE OF LEGAL KNOWLEDGE ABOUT MULTI-LEVEL MARKETING ACTIVITIES
(Issued together with Circular No. 2018 / TT-BCT dated 2018 of the Minister of Industry and Trade)
COMPANY'S NAME | SOCIAL REPUBLIC OF VIETNAM |
Number: …….. | (location and date) |
APPLICATION FOR EXAMINATION AND CERTIFICATION OF LEGAL KNOWLEDGE ABOUT MULTILEVEL MARKETING
To: Vietnam Competition Authority - Ministry of Industry and Trade
Company’s name (in capital letters): ………………………………………………………
Head office’s address: ………………………………………………………………………………
Legal representative: ……………………………………………………………………
Multi-level marketing registration certificate number: ……… Date of issue: ................
Business location: …………………………………………
The list of individuals taking the examination is enclosed to this application
We are liable for legality, accuracy and truthfulness of the attached documents.
| Legal representative of the company |
LIST OF CANDIDATES
(Attached to the Application number ... date ... of the Company ...)
Numerical order | Full name | Gender | Date of birth | ID card/Passport number | ID card/Passport number | ID card/Passport number | Certificate of completing legal knowledge training about multi-level marketing | Certificate of completing legal knowledge training about multi-level marketing | Certificate of completing legal knowledge training about multi-level marketing | ||||
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| Legal representative of the company |
APPENDIX 3
CERTIFICATE OF LEGAL KNOWLEDGE ABOUT MULTI-LEVEL MARKETING
(Issued together with Circular No. 2018 / TT-BCT dated 2018 of the Minister of Industry and Trade)
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