Heavy fines for multi-level marketing businesses that pay high commissions

Businesses paying commissions exceeding 40% of multi-level sales revenue in a year will be fined up to 30 million VND.

From January 5, multi-level marketing companies that pay bonuses and commissions exceeding 40% of their annual multi-level marketing revenue will be fined up to VND30 million.

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Enterprises must also deduct personal income tax from multi-level marketing participants to pay taxes before paying commissions and bonuses. If enterprises fail to do so, they will be fined 20 million VND. These are notable contents of Decree 124/2015.

According to this decree, multi-level marketers who advertise dishonestly or inaccurately about the goods offered for sale will only be fined up to 3 million VND. Only when this person provides false or misleading information about the nature and uses of the goods will he be fined up to 10 million VND.

According to the Competition Management Department, by mid-December 2015, 63 companies were licensed to sell multi-level marketing products. There were 10 other companies that submitted applications but were returned by the Department, such as Synergy Company, Ohay, Median Vietnam, Big Forest.../.

According to VOV