Recently, news came from the State Council examined and approved in principle " Direct Marketing Management Ordinance (Draft) "and" prohibition of pyramid schemes (Draft). " According to informed sources, the content of the draft manuscript before the difference is not large, the industry's most concerned about multi-level payment system is still in the ban.

  Industry estimates, the two regulations need fine-tuning after a month or so, probably by the end of August, early September was formally promulgated. In response, many direct selling companies, said the legislation was announced, the company's growth strategy will be adjusted, but the shop Sell Mode will not be abandoned. According to industry sources, as Team Payment was prohibited, it is estimated over the country Jiucheng direct business face to adjust.

's Confirmation informed from multiple sources, the State Council Legislative Affairs Office before the manuscript by including the majority of terms, such as 80 million yuan in registered capital, 20 million yuan deposit ratio from the original salesman bonus transferred 25% to 30%. According to informed sources, the current see the latest version of the "direct selling regulations," the main change in two aspects: namely, to open stores and provisions to open production plants.

Latest draft stipulates that direct selling enterprises engaged in direct selling activities in their areas should be established to facilitate and satisfy the consumer, direct sellers about prices, Returns and corporate law services network to provide other services.

Direct legislation, according to research Expert Wanjun explained that the new regulations do not explicitly "service network" should be "shop", nor to limit the number of service outlets.

It is understood that in addition to the two in Direct Method The draft regulation amendments focus on the larger dispute, the company's products direct sales only Health Products , Cosmetic And other consumer goods this provision, is also expected to be canceled in the latest version.

However, for the forthcoming two regulations, the industry's most concerned about the "multi-level payment" may still not open. It is understood that the latest version of the draft stipulates that direct selling enterprises to pay the salesman's commission, bonuses, and other economic benefits only from its own direct sales business Operate Income, the total may not exceed 25% of its total retail sales, special products by Business Remuneration approved by the Ministry may improve the ratio of the maximum shall not exceed 30%.

This provision is no doubt the "team payment" block at the door of the experts of hosts that direct legislation, the government tends to single-level direct sales, mainly from the regulatory point of view. But more than 2,000 direct marketing companies in the industry, 95% of the payment by the team of multi-layer model. This provision may cause a lot of gray business phenomenon.

Direct method of the upcoming news, no doubt eagerly look forward to by many direct sales companies have long welcomed, as officially announced regulations that direct selling industry in the legal recognition of the Government, but also for companies to do direct sales in China provide the basis. Almost with one voice of many direct selling companies, would not give up shops sales model.

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