Vietnam: Carrying out MLM activities in a province without obtaining a written certification of registration of MLM activities shall be fined up to VND 40 million

According to Decree No. 141/2018/ND-CP of Vietnam’s Government, a fine ranging from VND 30,000,000 to VND 40,000,000 shall be imposed upon a trader for committing one of the following violations:

- Carrying out MLM activities in a province or central-affiliated city without obtaining a written certification of registration of MLM activities from the Department of Industry and Trade of that province or central-affiliated city;

- Failing to maintain an authorized representative in a province where no head office, branch or representative office of the trader is located;

- Failing to comply with or improperly implementing the regulation on retention and submission of documents concerning the MLM activities carried out in a province at the request of a competent authority;

- Failing to comply with or improperly implementing the regulation on giving notification to the Provincial Department of Industry and Trade when organizing a conference, meeting or training program in MLM with the attendance of 30 persons, or 10 participants in the MLM network, or more, in a province where the registration of MLM activities has been certified as regulated;

- Failing to cooperate with relevant competent authorities in monitoring and supervising conferences, meetings and/or training programs in MLM organized by the MLM company;

- Paying a sum of commissions, bonuses and other economic benefits, including benefits earned from promotion programs, to participants during a year in excess of 40% of sales from the MLM activities of the MLM company in the same year;

- Failing to make payment of commissions, bonuses and other pecuniary economic benefits to participants by bank transfer;

- Failing to comply with or improperly implementing the regulation on reporting on MLM activities;

- Failing to enter into a written MLM contract with every participant or signing a MLM contract which does not meet format requirements as regulated by laws;

- …

View other violations and penalties at Decree No. 141/2018/ND-CP of Vietnam’s Government, which amends and supplements Decree No. 185/2013/ND-CP.

- Thanh Lam -

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