Multi-Level Marketing Supervision Act Article 10

Before a participant takes part in the plan or organization of a multi-level marketing enterprise, the enterprise shall inform the participant of the following particulars, and shall make no concealment, false, or misleading presentations:1. paid-up capital and gross business volume of the multi-levels sales enterprise;2. multi-level marketing plan, and conditions of participation;3. laws and regulations relevant to multi-level marketing;4. obligations and responsibilities of a participant, and conditions of withdrawal by a participant from the organization or plan, and rights and obligations arising from the withdrawal;5. matters relevant to the goods or services;6. the calculation methods, criterion, and reasons, when multi-levels sale enterprises deduct the devaluation amount from the price in repurchasing the goods or services pursuant to the later sentence of Articles 21.3 or 24 of the Act;7. such other matters as may be required by the competent authority.When a participant introduces another person to participate in the organization or plan, such participant shall make no false or misleading presentations on items listed in the preceding paragraph