Article 5
Prior to commencing multi-level sales activities, a multi-level sales enterprise
shall file a completed written report that accurately sets forth the following
particulars for recording by the central competent authority:
- business name, paid-in capital, responsible person, place of office,
date of incorporation registration, and a photocopy of the profit-seeking
business registration;
- locations of the principal place of business and other places of business;
sales organization or plan;
- the date of commencement of multi-level sales activities;
- multi-level sales system, which shall include the contents, offering
requirements, and methods of calculating participants' commissions, bonuses,
and other economic benefits; a forecast of the highest possible share of
gross operating revenues that could be constituted by the total amount
of such commissions, bonuses, and other economic benefits;
- the content and format of the contract;
- items, prices, unit costs, uses and sources of the goods to be sold or
services to be provided, and related matters;
- other matters specified by the central competent authority.
- The format of the "written report" referred to in the preceding paragraph
may be prescribed by the central competent authority.