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  Article 12 The State Council department in charge of commerce shall announce the list of direct selling enterprises and their branches on the government website, and update the same in a timely manner. (来源:http://www.EnglishCN.com)

  PART THREE RECRUITMENT AND TRAINING OF DIRECT SELLERS

  Article 13 Direct selling enterprises and their branches may recruit direct sellers. No work unit or individual other than a direct selling enterprise and its branches may recruit direct sellers.

  The legitimate marketing activities of direct sellers may not be investigated and handled as unlicensed business.

  Article 14 Direct selling enterprises and their branches may not publish any advertisement that advertises the sales remuneration of direct sellers, or require payment of fees or purchase of goods as the conditions of becoming a direct seller.

  Article 15 Direct selling enterprises and their branches may not recruit the following persons to be direct sellers:

  1. persons under the age of 18;

  2. persons that have no or limited capacity for civil acts;

  3. enrolled full-time students;

  4. teachers, medical practitioners, civil servants and military personnel in active service;

  5. official employees of the direct selling enterprise;

  6. foreigners; and

  7. persons that are forbidden by laws or administrative regulations to hold concurrent posts.

  Article 16 A direct selling enterprise and its branches shall sign a marketing contract with every direct seller they recruit, and shall ensure that the direct sellers carry out direct selling activities only in areas where a service outlet has been established within the administrative region of the province, autonomous region or municipality direct under the central government in which one of its branches is located. Personnel that have not signed a marketing contract with a direct selling enterprise or its branch may not carry out direct selling in any manner.

  Article 17 Direct sellers may terminate a marketing contract any time within 60 days after signing it; after 60 days, the direct seller shall give 15 days‘ notice to the direct selling enterprise if he wants to terminate the marketing contract.

  Article 18 A direct selling enterprise shall conduct business training and examination on the direct sellers it intends to recruit, and shall issue direct seller certificates to them after they pass the examination. No one may carry out direct selling activities without obtaining a direct seller certificate.

  Direct selling enterprises shall not charge any fee for business training and examination on direct sellers.

  No work unit and individual other than a direct selling enterprise may organize business training of direct sellers in any name.

  Article 19 Instructors that conduct business training on direct sellers shall be official employees of a direct selling enterprise and shall meet the following conditions:

  1. has worked in that enterprise for at least one year;

  2. has a university undergraduate or higher level education and the relevant professional knowledge in law and marketing;

  3. has no record of being subject to criminal penalty for wilful criminal offence; and

  4. has no record of operation in major violation of law.

  The direct selling enterprise shall issue a direct selling trainer certificate to the instructor that meets the provisions stipulated in the preceding paragraph and submit the list of the persons that have obtained the direct selling trainer certificate to the State Council department in charge of commerce for record filing. The State Council department in charge of commerce shall announce on the government website the list of the persons that have obtained a direct seller trainer certificate.

  No foreigner may engage in the business training of direct sellers.

  Article 20 Direct seller certificates and direct seller trainer certificates issued by direct selling enterprises shall be printed in the format specified by the State Council department in charge of commerce.

  Article 21 Direct selling enterprises shall be responsible for the lawfulness of the business training of direct sellers, the orderliness of the training and the safety of the training venue.

  Direct selling enterprises and their direct seller trainers shall be responsible for the lawfulness of the training contents of the business training of direct sellers.

  The specific administration procedures on the business training of direct sellers shall be separately formulated by the State Council department in charge of commerce and the State Council administration for industry and commerce in conjunction with other relevant authorities.

  PART FOUR DIRECT SELLING ACTIVITIES

  Article 22 Direct sellers shall comply with the following provisions when marketing products to consumers:

  1. he shall produce his direct seller certificate and marketing contract;

  2. he may not enter the premises of a consumer to market products in a forcible manner without the permission of the consumer, and shall discontinue the marketing activity and leave the premises of the consumer immediately upon the request of the consumer;

  3. before closing a deal, he shall explain the goods return policy of the enterprise to the consumer in detail; and

  4. after closing a deal, he shall provide the consumer with an invoice and a sales voucher containing such particulars as the goods return policy and the address and telephone number of the local service outlets of the direct selling enterprise.

  Article 23 Direct selling enterprises shall mark prices on direct selling products and such prices shall be consistent with the product prices displayed at the service outlets. Direct sellers must market products to consumers at marked prices.

  Article 24 Direct selling enterprises shall pay remuneration to direct sellers at least once a month. The remuneration payable to a direct seller by a direct selling enterprise shall be calculated exclusively on the basis of the income from the sales of products made by the direct seller directly to consumers. The total amount of the remuneration (including commissions, bonuses, rewards in all forms and other economic benefits) may not exceed 30% of the income from the sales of products made by the direct seller directly to consumers.

 
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