Research On The Nature Of Multi-level Marketing And Mlm Spreading Countermeasure Of Civil Legal

The regulation of law to multi-level marketing in China, have passed through four variation. Firstly, " notice on the investigation and prosecute illegal actions of multi-level marketing " issued by SAIC in 1994, viewing the MLM as a legitimate business model, attacked against the illegal actions in it; Secondly, " Regulations on Multi-level Marketing ," issued by SAIC in1997 allowing single-level sales, restricted illegal multi-level marketing; Thirdly , " Notice on the Prohibition of Multi-level Marketing ", promulgated by the State Council in 1998 made a total ban on all MLM activities in China; Fourthly, the "Regulations on prohibiting Multi-level Marketing " and "Regulations on Direct Marketing ", promulgated by the State Council at the end of 2005 defined Multi-level Marketing as multi-level direct sales, and prohibited all of the activities, whether legal or illegal . Our current administrative rules and regulations for a comprehensive ban, to marketing, identify illegal pyramid schemes for the masses with difficulty, pyramid selling is the spread of the main reason. registered pyramid retail activity in our relationship is complex and the danger of large, deep, to fight hard to rely solely on MLM personnel shall be investigated for criminal or administrative responsibility and not be registered pyramid retail personnel civil liability, the objective on the illegal spread of the pyramid schemes to encourage. Perfecting legislation, respect for the objective of development and the unlawful pyramid selling and reasonable in the multilevel marketing of the standard leads marketing activities and illegal pyramid schemes for civil liability, is to curb illegal pyramid schemes. the policy for restraining.From the perspective of civil law, this paper discusses countermeasure of civil law to curb illegal MLM from unclear concepts of MLM and multi-level direct selling and the current lack of civil liability legislation to the relationship between MLM, why MLM have to be regulated by civil law, and how to regulate. Except the introduction and conclusion, the text includes five parts:According to the different definitions of MLM inside and outside the country, based on the concepts of comparative analysis, Part One re-define the broad and narrow concept of MLM: broad MLM, in fact, is generally recognized by scholars as multi-level direct selling; narrow MLM is the one suppressed at the present, that is, illegal Multi-level Marketing. This prevents the defects such as unclearness and fuzzy logic of concepts of existing MLM and multi-level direct sales. To redefine the definition is the difficulty and highlight of this article which pave the way for the reasons for the spread of MLM in the second part and the measures of civil law in the fifth part.Part two points out that MLM is essentially a transaction form of market players, which aims at changing of real rights. MLM is a pretext for purchase of illegal conduct, external relations clover-growing is illegally clover-growing for the purpose of the mandate.MLM is conducted by the way of fraud, duress and restricting personal freedom,Is also a part of the infringing act and deed.Part three briefly introduces the evolution of MLM in China and its current situation of spread, and analyses the reasons MLM spreading repeatedly in China. The reasons, apart from information asymmetry, the difficulties of life, employment pressure and economic causes, seeking profit, speculative psychology, the lack of management experience in the management of MLM,It also emphasizes that the unscientific definition of MLM on laws and the existing vacancies in the civil liability legislation is an important reason for the spread of MLM.Part four discusses the extraterritorial status of MLM and the merits we should learn from. Most extraterritorial legislation recognize the legitimacy of multi-level direct sales(that is MLM). The main emphasis of its combat is illegal MLM activities such as "infinite chain," "snowball," "pyramid sales". In order to prevent MLM made use of by unscrupulous elements, multi-level direct selling is explicitly limited by limiting the salesman's return, free return ("cooling-off period" rules), secured payment system, and other civil measures in foreign countries.Part five, MLM salesman should bear civil liability, which represents fair and justice of law. The liability includes culpa in contrahendo, contract invalid or tort liability.on the basis of regulation on MLM in foreign countries, proposes the two programs of civil legal system as solutions to curb this social problem of illegal MLM. Firstly, on the basis of the existing regulations on MLM, clarifying the concepts of MLM and multi-level direct sales we should add civil liability through legal interpretation; secondly, Drawing lessons of "cooling off period" and the deposit system in Malaysia and South Korea, we should enhance the legal position of "Regulations on Prohibiting MLM" and " regulations on Direct Sales",and complete the corresponding the rights and obligations and civil liability system.