'Tightening' standards for multi-level marketing sellers

The provisions of the amended circular will take effect from July 21, 2023 with some notable management provisions including: The circular supplements regulations on the inspection process, inspection forms, evaluation of inspection results and the process of granting and revoking knowledge certification for local contacts. Similar to the test of knowledge of multi-level marketing law in Circular No. 10/2018/TT-BCT, the knowledge test for local contacts is organized by the National Competition Commission or authorized in writing to a multi-level marketing law training facility.

Multi-level marketing conditions will be tightened to better protect consumer rights.

The knowledge test can be conducted in the form of essay or multiple choice questions in a minimum of 60 minutes. The assessment criteria for participants in the multi-level marketing legal knowledge test and the assessment criteria for participants in the local contact person knowledge test are on a 100-point scale. To be eligible to become a trainer for a multi-level marketing enterprise, the test taker must score 80 points or more for the multiple choice test and 65 points or more for the essay test. To be able to become a local contact person for a multi-level marketing enterprise, the test taker must score 70 points or more for the multiple choice test and 50 points or more for the essay test.

These additional regulations aim to improve the conditions for local business contacts. Accordingly, in case a business does not have a headquarters, branch, representative office or business location in the locality, it must appoint a local contact, and this contact must be trained, pass a knowledge test and be certified by the Ministry of Industry and Trade to be able to act as a contact for the business.

This regulation aims to overcome the situation where enterprises assign focal points just to cope with the situation, without understanding the law or understanding the business activities in the locality, causing difficulties for management work in the area.

According to statistics from the Department of Competition and Consumer Protection (Ministry of Industry and Trade), as of March 2023, there were only 19 businesses operating legally in multi-level marketing nationwide.

The revenue of the multi-level marketing industry is still growing continuously. The entire multi-level marketing industry has not had a year of decreased revenue in the past 5 years, but has tended to increase continuously with a fairly high growth rate.

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