The Suggestions Of Intendance And Legislation On Direct Selling

Born in 1920s, modern direct selling is a new kind of marketing mode, which means a way of selling products and service by the direct sellers to customers face to face, without the regular retail outlets. According to its organization pattern and way of salary counting, it can be classified into mono-level direct selling an multi-level direct selling. After coming to Chinese mainland in 1990s, direct selling had been developing prosperously and made great contributions to the economic development and job arrangement. However, a minority of people with ulterior motives took advantage of this business pattern, resulting in a great many disguised an illegal direct selling problems. Additionally, since in China the market economy hasn't fully developed and the correlative rules and laws lagged behind, lots of social and economic problems occurred. Although many notices,files were issued to strictly control this phenomenon, the positive effect was not obvious. Thus, in 1998 our government blocked the direct selling industry, banning the management of all the direct selling enterprises and suspending business for rectification. Forbidding the direct selling business captured much attention from the global community, and became one the negotiation contents in joining in the WTO. To honor the WTO, China would cancel the restriction of wholesale and retail business without regular outlets, reopen direct selling market and make laws for direct selling industry. Later in Nov,1stand Dec,1st,2005, "Administration Act of Direct Selling" and "Forbade Regulations of Multi-level Marketing" were unveiled, which was a symbol of restarting and normalizing the direct selling market in China.For 5 years," Act of administration on Direct sale " and "Forbade Rule on Multi-level Marketing" have provided the legal basis and the support for the domestic and foreign enterprises'normal management in China, promoted the healthy development of our country's direct sale industry, and contributed to China's boom in market economy development. But as concerns China present direct selling industry surveillance and the legislation situation, there are still many problems. For example, how to propagandize differences and the related legal knowledge between the right direct selling and the illegal multi-level marketing and the related legal knowledge well; the recruitment, training and the specification of direct sellers; the improvement of service in the direct selling enterprises; the question of the product in the non-direct sale enterprise straight shop and non-direct seller selling enterprise; the establishment of interior supervision system in direct seller enterprise; the discussion of opening multi-level direct selling markets and the legal supervision, and so on. These questions above are all worth careful studying,as they have both important theoretical value and profound practical significance in promoting China's development of market economy.