China Law & Practice

Follow us:

profile

China Law & Practice

CLP_editorial

CLP_editorial profile

RT @business: The one chart to get you up to speed on China's market moves http://t.co/cjxVJTG0Re http://t.co/mJAOvbYpBQ

Aug 27 2015 11:05 ·  reply ·  retweet ·  favourite
CLP_editorial profile

A fake Goldman Sachs in Shenzhen? http://t.co/iDgJjc2wzE via @business

Aug 27 2015 07:13 ·  reply ·  retweet ·  favourite
CLP_editorial profile

RT @george_chen: How Baidu, Tencent and Alibaba are leading the way in China's big data revolution http://t.co/Vz8MlUh73B via @CKGSB http:/…

Aug 26 2015 09:11 ·  reply ·  retweet ·  favourite

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.

Date: 01 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.
**

 
 


China Law & Practice Events

MIP Global IP & Innovation Summit 2015 全球知识产权及创新峰会
01 & 02 September 2015
Location: Shanghai

China Law & Practice Awards
17 September 2015
Location: Beijing

The China Global Investment Summit 中国全球投资峰会 2015
22 & 23 September 2015
Location: Hangzhou

asialaw Asia-Pacific Dispute Resolution Summit 2015
24 September 2015
Location: Hong Kong