This material is a print prescribed by the Fair Trade Commission as a “multi-level sales commentary” under Article 18, Paragraph 1 of the Enforcement Regulations of the Door-to-Door Sales, etc. Act.

What is multilevel sales?

– Multistage selling is a step-by-step process in which a consumer who has used a product sold by a multistage seller (company) becomes a multistage seller and encourages another consumer to sell or purchase, without going through a general distribution channel such as manufacturer → wholesaler → retailer → consumer.

– Multilevel sales can cause damage to consumers by relying on direct personal sales and ointment sales, as consumers become salespeople, and sales of salespeople are spread sequentially and step by step.

– Pyramid sales, which caused social controversy, caused gambling by setting product prices high for quality, unfairly demanding money from those who want to become salespeople, and forcing salespeople to purchase goods or recruit lower-level salespeople.

– The government implements a law on door-to-door sales so that multi-level sales do not cause gambling and consumer damage, and violations of the same law can be punished accordingly.

When I was recommended to be a multi-level salesperson,

When you are invited to join a multi-level sales organization as a multi-level salesperson, please check the following first.

– Before joining as a salesperson, make sure that the company you want to join is a company registered with the Fair Trade Commission or city or provincial governor under the Door-to-Door Sales Act, and if you have any doubts, hold off your subscription and contact the Fair Trade Commission or city, province (department), business groups, or consumer groups.

– If you want to be a multi-level salesperson, you should first carefully review the company’s products to see if you are fit to act as a salesperson. Multilevel sales originally have no stores and do not advertise, so the quality and price of the products should be competitive enough.

– If you want to join as a multi-level salesperson, please check the criteria for payment of sponsorship allowances, the average and distribution of sponsorship allowances paid to multi-level salespeople, and then sign up considering the expected income opportunities.

– A multi-level salesperson may withdraw from the sales organization at any time after expressing his/her intention to withdraw, and in this case, the multi-level salesperson may not impose any conditions on the withdrawal.

When purchasing and selling goods, etc. from a multi-level vendor;

– Multilevel vendors are required to subscribe to consumer damage insurance. When purchasing goods or services (hereinafter referred to as “goods, etc.”) from a multi-level vendor, make sure to check whether consumer damage compensation insurance is excluded and receive the certificate. If a multi-level seller does not refund the price of goods, etc. or does not supply goods, etc. even though the subscription or contract is withdrawn or returned (hereinafter referred to as “subscription withdrawal, etc.), part or all of the goods, etc. can be compensated by the insurance company as prescribed by the insurance policy.

– If three months have not passed from the date of purchase, the multi-level salesperson may withdraw the subscription from the multi-level salesperson and receive a refund for goods, etc. The refund amount is as follows.

※ In the case of withdrawal, etc. of a subscription within one month from the date of supply, the full amount of the payment;

※ In the case of withdrawal, etc. of a subscription within two months after one month from the date of supply, the agreed amount of not less than 5% of the amount deducted.

※ In the case of withdrawal, etc. of a subscription within three months after two months from the date of supply, the agreed amount as 7% of the price is deducted.

– If you withdraw your subscription to a multi-level seller and refund the product, you can get a refund within 3 business days. If the multi-level vendor fails to refund within 3 business days, the amount added to the delayed interest may be refunded.

– On the other hand, when selling a product to a consumer as a multi-level salesperson, the sale price must be refunded within 14 days from the date of signing the contract (if the product is delivered or provided later than the contract, within 14 days from the date of receiving the product or service).