Multi-Level Marketing Supervision Act Article 38

The competent authority shall designate the multi-levels sale enterprises having applied for record to donate certain property in order to establish a protection institution in charge of protecting the rights and interests of multi-levels sale enterprises having applied for record, and participants, and dispute resolution. The donation amount may be deducted from the protection fund and annual fee as prescribed in Paragraph 2.The protection institution may collect protection fund and annual fee from the multi-levels sale enterprises having applied for record. The collection methods and specific amount shall be determined by the competent authority.If the multi-levels sale enterprises having applied for record fail to pay according the preceding two paragraphs, it will be deemed as in violation of Article 32.1, and sanctioned accordingly.The enterprises may request the protection offered by the protection institution only after paying fund and annual fee according to the rules issued by the competent authority.The organizations, duties, fee appropriation, operation procedures, and its monitoring and management shall be determined by the competent authority.