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Official Gazette

Friday, August 19, 2022

Draft sets out stricter regulations on advertisement of MLM products

Updated: 18:30’ - 30/12/2021
The use of images, equipment, costumes of health workers in information sheets about products, especially foodstuff, traded under the multi-level marketing (MLM) schemes would be prohibited, according to a draft decree designed by the Ministry of Industry and Trade to replace Decree 40 of 2018.

The provision of information on foodstuff in the form of posting, quoting or citing patients’ thank-you letters or descriptions of the curative effect of foodstuff or physicians’ and pharmacists’ articles would also be banned.

If violating such regulations, in addition to being administratively sanctioned, MLM enterprises would also have their MLM registration certificates revoked.

In order to strengthen the management and supervision of providing information on MLM products, the draft also adds requirements for enterprises when holding online conferences, seminars or training courses on products traded under MLM schemes.

Accordingly, in case of organizing an event with the participation of attendants from one locality, an enterprise would have to notify the event to the provincial-level Department of Industry and Trade of such locality. In case the participants come from different localities, the enterprise would have to send a notice of the event to the provincial-level Department of Industry and Trade of the locality where its head office is located.- (VLLF)

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