Research On Legal Countermeasure For Dilemma Of Direct-selling Industry

It is necessary to develop the direct selling industry in China for its significance to individuals, society and our country. Nowadays, China's direct selling market is growing rapidly with a certain scale. But the living environment of this industry is pretty poor and there are so many difficulties that the direct selling industry in China has to overcome in the future. So we must solve these obstacles urgently to make sure that the direct selling industry in our country can be developed healthily.To research the legal strategy for tackling the dilemma of direct selling industry in China, we mainly set out the following ideas. First of all, we should review the direct selling, interpret the meaning of direct selling, introduce the classification of direct selling and its significance and judge the value of promoting the direct selling industry. Then we need to summarize the troubles with which China's direct selling industry is confronted. We should analyze what negative effects these difficulties exert on the healthy development in the direct selling industry in our country. Next, we should examine why such industry gets into trouble. Finally, we should give suggestion on improving certain legislation and the supervision mechanism and building the system of industry self-regulation.This article is consisted of the following four parts in addition to the introduction and the conclusion:Part I: Review of direct selling. First, we interpret the meaning of direct selling. Based on the meaning of direct selling, we point out that both multilevel direct selling and illegal pyramid scheme have the same form, but there are essential differences between them. Then, we introduce the classification of direct selling and its significance. We need to compare the differences between the single level direct selling and the multilevel direct selling, which help us to further identify whether we should open the single level direct selling and multilevel direct selling at the same time according to the direct selling legislation in our country. Also, we need to assess the effects that opening the single level and multilevel direct selling at the same time bring to the government supervision. Finally, this paper researches the values of developing the direct selling industry. By analyzing the current situations of the direct selling industry in our country and demonstrating value and prospect of the direct selling industry, we make a conclusion that the direct selling industry in our country has grown rapidly and has been broad developed. Also, it won't be replaced by other industries in the future and direct selling has its own strengths. As a result, developing the direct selling industry has important value to individuals, community and our country.Part II: Difficulties of developing the direct selling industry in China. First of all, we should summarize the tough situations with which the recent direct selling industry development in our country is confronted, including of dilemma of harsh market access, single direct selling approach, the proliferation of illegal direct selling and the spread of illegal pyramid scheme. Then, we point out what the negative effects these tough situations have caused on the related marketing subject, such as direct selling enterprises, government, consumers and direct sellers, which hinder the development of the direct selling industry.Part III: The causes of the dilemma of direct-selling industry in China. There are three main reasons of the predicament of the direct selling industry development in our country. Firstly, direct selling legislative limitation. Direct selling legislation reflects the will of the some sector rather than the will of the people. Sector's interest overrides public interests and civil rights. Then, regulators lack the awareness of efficiency. Regulators use pressure methods restricting the development of the direct selling industry. Finally, the direct selling industry lacks effective internal restriction. Direct selling violations and illegal pyramid selling happen from time to time partly because some direct selling companies pursue maximum profits and performance of fast-growing. Besides, internal discipline system is not perfect and direct selling association does not pay attention to supervision. As a result, direct selling company lack the power and capacity that they need to promote development and maintain the order of direct selling market jointly.Part IV: Suggestions on promoting the healthy development of direct-selling industry. According to the summarizing hard situations that the direct selling industry is faced with and the analyses of the causes mentioned above, we propose specific measures. Firstly, perfect the market access of direct selling. We should solve the problem of high threshold in direct marketing. Therefore, direct selling will return to its essential characteristics such as easy access to direct selling market, low cost and low risk. Then, open multilevel direct selling, so that we can solve the problem of single direct selling approach and we should propose some related actions to avoid legislative departmentalization and regulate multilevel direct selling. Thirdly, improve the supervision mechanism. We need to demonstrate how to introduce supervision and extend the application of flexible regulation in practice. Also, we should establish a collaboration mechanism, make all levels of regulatory responsibilities clear and implement supervision of direct selling company credit classification to solve the problem of low efficiency. Finally, build system of industry self-regulation. By establishing direct selling industry association and making full use of its related functions, we will strengthen industry self-discipline and make up for the weakness of government supervision.