Direct Legal Regulation

Direct Selling is the selling institution in which products and services are directly face-to-face marketed to customers by independent distributor, away from a fixed retail location. According to the organization way of distributor and the calculation way of payment, Direct Selling can be divided into Single-level Marketing and Multi-level Marketing( MLM), Singal-level Marketing refers to the direct selling enterprise to recruit the direct sellers to sells the product directly outside the fixed business place to the final consumer the sale on commission way. The Multi-level Marketing is in the single level Marketing foundation of higher form which develops with the aid of the interpersonal relationship network. MLM distributor can obtain income not only from bis sales but also from the sales of the people they recruit, This kind of selling institution evolves from last 1940s in U.S.A. After half a century of development, which has already been the main form of Direct Selling.Since MLM entered China Mainland in the 1990s, a large number of economic and social issues arose, in which Pyramid- Sales- Scheme is main. As a result of the characteristic of Direct Selling, the China market economy growth is in addition imperfect and the correlation laws and regulations lag, So that Chinese government banned Multi-level Marketing( MLM). The prohibition of Direct Selling procedure has aroused international society's interest, and becomes a content in China's joining the World Trade Organization negotiations According to China's promising when entering WTO, 3 years after entering WTO, China will cancel the limitation " batches or retail in no-fixed location ", that means China will reopen Direct Selling market and enact a law of Direct Selling.At present in the countries that allow the Direct Selling to develope, the majority have the special Direct Selling laws and regulations, although its content has the difference, but controlling organization's supervising and managing system, the Anti-Pyramid Scheme system and the Cooling-Off-time system are the key points in Direct Selling legislation.Based on this, this articl makes more exhaustive combing...