China Law & Practice

Follow us:

profile

China Law & Practice

CLP_editorial

CLP_editorial profile

RT @michelleprice36: US SEC sanctions Hong Kong auditing firm Baker Tilley over its failure to spot fraud at China North East Petroleum ht…

Dec 18 2014 07:54 ·  reply ·  retweet ·  favourite
CLP_editorial profile

Avon hit with US$135m fine for FCPA violations in China: http://t.co/0RLEdN0wq3 and http://t.co/p0R9gi0I7g

Dec 18 2014 07:42 ·  reply ·  retweet ·  favourite
CLP_editorial profile

Tencent signs deal with Sony: http://t.co/IUjydhHCVv Are all these deals reducing online piracy?

Dec 17 2014 04:39 ·  reply ·  retweet ·  favourite
Magazine

Change font size: Switch to default font size Switch to medium font size Switch to large font size

China's Milestone Direct Selling Regulations: A Victory for Single-level Selling over Multi-level Selling

Fulfilling an important WTO commitment, China has ended a seven-year ban on direct selling with the release of new regulations allowing the sale of consumer products away from fixed retail locations. New anti-pyramid regulations also indicate that the government is getting tough on pyramid selling schemes in the country.

Issue: October 2005

Keywords (click to search): direct selling pyramid scheme marketing WTO regulation liberalization on direct selling door-to-door sales classification of direct sale single level direct selling

By David Livdahl and Zhongda Wu, Paul, Hastings, Janofsky & Walker LLP, Beijing

Direct selling companies such as Amway and Avon have been anxiously awaiting new rules on direct selling in the PRC. On September 2, 2005, the long-awaited direct selling rules were finally made public following earlier news reports that they were passed by the State Council on August 10, 2005 and endorsed by Premier Wen Jiabao on August 23, 2005. The new rules, including the Regulations for the Administration of Direct Selling (直销管理条例)(zhixiao, the Direct Selling Regulations), effective December 1, 2005, and the Regulations for the Prohibition of Pyramid Selling (chuanxiao, the Anti-Pyramid Regulations), effective November 1, 2005, mark an end to the seven-year ban on direct selling in China and a fulfilment of the country's WTO commitment to lift market access and national treatment restrictions in the area of sales away from fixed locations.

Direct Selling vs. Pyramid...


Register with China Law & Practice to unlock our premium content for the next 14 days.

**Full text translations are only available for individual purchase or as part of a subscription.
**