the Ministry of Commerce, the State Administration for Industry and Commerce Order of the Ministry of Commerce and the State Administration for Industry and Commerce No.24 The Measures for the Administration of Information Reporting and Disclosure of Direct Selling Companies, which were deliberated and Bo Xilai, the Minister Wang Zhongfu, the Minister November 1st, 2005 Measures for the Administration of Information Reporting and Disclosure of Direct Selling Companies Article 1 The present Measures are formulated according to the provisions of Article 28 of the Regulations on Direct Selling Administration. Article 2 The direct selling company shall establish perfect system on information reporting and disclosure, and accept the supervision and Article 3 The websites of the Ministry of Commerce and the State Administration for Industry and Commerce (hereinafter referred to as the SAIC) 1. relevant laws, regulations and rules; 2. the announcement on the scope of direct selling products; 3. the name list of direct selling companies and the list of direct selling products thereof; 4. the name list of the provincial branches of a direct selling company, and the regions and service networks where they undertake direct 5. the use of the caution money of a direct selling enterprise; 6. the patterns of the certificate of sales promoters and the certificate of direct selling trainers; 7. information on the violation of regulations by direct selling companies, direct selling trainers and sales promoters and the punishment 8. other information necessary to be publicized. Article 4 The direct selling company shall disclose information to the public through the Chinese website established by it. The Chinese website Article 5 The direct selling company shall, after its establishment, disclose the following information to the general public in a truthful, 1. the total number of sales promoters of the direct selling company, the total number and name list of the sales promoters of every 2. the names, addresses, ways of contact and the responsible persons of the direct selling company and its branches, and the names, addresses, 3. the catalogue of the direct selling products, retail prices, specifications on product quality and standard, and the major components Where a direct selling product should be up to the state standard for certification, license or compulsory standard according to the 4. the system for the computation of remuneration of sales promoters and the encouragements on them; 5. the measures for the returning or changing of direct selling products, the place for the conditions on the returning and changing 6. after service departments, functions, complaint telephone and the procedure for handling the complaints; 7. the rights and obligations of the direct selling company and its sales promoters in the sales contract signed by the direct selling 8. the name list of direct selling trainers, the scheme for the training and examination of sales promoters; and 9. matters concerning the major litigation or arbitration of the company and its treatment. If there is any alteration in the aforesaid items, the direct selling company shall update the information on the website in time Article 6 After the establishment of a direct selling company, it shall, before the 15th day each month, report and put on archives the following 1. the deposit and payment of caution money; 2. the detailed information on the direct sales income and tax payment of sales promoters; (1) the monthly direct sales income and the amount of tax payment of sales promoters; and (2) the proportion of the amount of direct sales income of sales promoters to the income from the direct selling of products to consumers 3. the sales performance and tax payment of the company every month; 4. the archival filing of direct selling trainers; and 5. other items necessary to be reported and put on archives. Article 7 The direct selling company shall, in April every year, publicize the items as listed in Article 5 of the present Measures by way Article 8 The product specifications and publicity materials used by a direct selling company and its sales promoters shall be consistent with Article 9 Where any direct selling company fails to make information disclosure pursuant to the Regulations on Direct Selling Administration Article 10 The power to interpret the present Measures shall remain with the Ministry of Commerce and the SAIC. Article 11 The present Measures shall come into force as of December 1st, 2005. |
the Ministry of Commerce, the State Administration for Industry and Commerce
2005-11-01