Article 25　Direct selling enterprises shall set up and implement a sound goods replacement and return system. (来源：英语学习门户 http://www.EnglishCN.com)

　　Consumers may， within 30 days of the purchase of a direct selling product that has not been unsealed， request to the direct selling enterprise and its branch or the local service outlet or to the direct seller that marketed the product for replacement or return of goods on the strength of the invoice or sales voucher issued by the direct selling enterprise. The direct selling enterprise and its branch， the local service outlet or the direct seller shall handle replacement or return of goods on the basis of the price marked on the invoice or sales voucher within seven days after the consumer has made the request for replacement or return of goods.

　　Direct sellers may， within 30 days of the purchase of a direct selling product that has not been unsealed， request to the direct selling enterprise and its branch or the local service outlet for replacement or return of goods on the strength of the invoice or sales voucher issued by the direct selling enterprise. The direct selling enterprise and its branch or the local service outlet shall handle replacement or return of goods on the basis of the price marked on the invoice or sales voucher within seven days after the direct seller has made the request for replacement or return of goods.

　　Where a consumer or direct seller requests replacement or return of goods in circumstances other than those stipulated in the preceding two paragraphs， the direct selling enterprise and its branch， the local service outlet or the direct seller shall handle replacement or return of goods in accordance with the provisions of the relevant laws or regulations or the stipulations in the contract.

　　Article 26　If a dispute over replacement or return of goods arises between a direct selling enterprise and a direct seller or between a direct selling enterprise together with its direct seller and a consumer， the former party shall bear the burden of proof.

　　Article 27　Direct selling enterprises shall bear joint and several liability for the direct selling acts of their direct sellers except where it can be proved that the direct selling acts of a direct seller are not related to the enterprise.

　　Article 28　Direct selling enterprises shall set up and implement a sound information filing and disclosure system in accordance with the provisions of the State Council department in charge of commerce and the State Council administration for industry and commerce.

　　The contents， methods and related requirements of the information filing and disclosure by direct selling enterprises shall be stipulated separately by the State Council department in charge of commerce and the State Council administration for industry and commerce.

　　PART FIVE　SECURITY DEPOSIT

　　Article 29　Direct selling enterprises shall open a dedicated account with a bank designated jointly by the State Council department in charge of commerce and the State Council administration for industry and commerce， and make a security deposit into the account.

　　At the time of establishment of a direct selling enterprise， the amount of security deposit shall be Rmb 20 million. After the direct selling enterprise has commenced operation， the amount of the security deposit shall be adjusted monthly to be maintained at 15% of the sales income from direct selling products of the direct selling enterprise in the previous month， but it may not exceed Rmb 100 million at maximum or be less than Rmb 20 million at minimum. The interests on the security deposit belong to the direct selling enterprise.

　　Article 30　The State Council department in charge of commerce and the State Council administration for industry and commerce may jointly decide to use the security deposit under any of the following circumstances：

　　1. failure of the direct selling enterprise to pay remuneration to direct sellers or refund direct sellers or consumers for returned goods without proper reason；

　　2. the direct selling enterprise is unable to pay remuneration to direct sellers or refund direct sellers and consumers for returned goods due to termination of operation， merger， dissolution， transfer or bankruptcy， etc.； or

　　3. refusal without proper reason by or inability of the direct selling enterprise to provide compensation where compensation shall be provided according to law for the loss caused to consumers due to problems with a direct selling product.

　　Article 31　Direct selling enterprises shall make up the amount of the security deposit to the level specified in Paragraph Two of Article 29 hereof within one month after the security deposit is used in accordance with Article 30 hereof.

　　Article 32　Direct selling enterprises may not use the security deposit to provide security for other parties， or to discharge its debts in violation of the provisions hereof.

　　Article 33　If a direct selling enterprise ceases to engage in direct selling activities， it may withdraw the security deposit from the bank on the strength of the document issued by the State Council department in charge of commerce and the State Council administration for industry and commerce.

　　Article 34　The State Council department in charge of commerce and the State Council administration for industry and commerce shall be jointly responsible for the daily supervision of security deposits.

　　The specific administrative procedures on the making， payment and use of security deposits shall be formulated separately 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 SIX　SUPERVISION AND ADMINISTRATION

　　Article 35　The administration for industry and commerce is responsible for the daily supervision of direct selling enterprises and direct sellers and their direct selling activities. The administration for industry and commerce may adopt the following measures to carry out on-site inspection：

　　1. enter the relevant enterprise to conduct inspection；

　　2. require the relevant enterprise to provide the relevant documents， information and supporting materials；

　　3. inquire the relevant parties， interested parties and other relevant persons， and require them to provide the relevant materials；

　　4. inspect， reproduce， seal up or distrain the materials and illegal property of the relevant enterprise that are related to direct selling activities； and

　　5. examine the direct seller trainer certificate and the direct seller certificate of the relevant persons.

　　When the administration for industry and commerce conducts on-site inspection pursuant to the provision of the preceding paragraph， there shall be at least two inspectors and they shall produce their legal identity documents. If sealing up or distrainment is to be implemented， it must be approved by the principal responsible person of the administration for industry and commerce at the county level or higher.

　　Article 36　Where the administration for industry and commerce discovers that an enterprise has committed acts in violation of these Regulations during its implementation of daily supervision and administration， it may， upon the approval of the principal responsible person of the administration for industry and commerce at the county level or above， order the enterprise to suspend the relevant business activities.

　　Article 37　The administration for industry and commerce shall set up and announce a reporting telephone number to receive reports and complaints about acts that violate these Regulations， and shall investigate and handle such reports and complaints in a timely manner.

　　The administration for industry and commerce shall keep the identity of the informant confidential， and shall grant rewards to persons whose reports deserve credit in accordance with the relevant State provisions.