SUPERVISORY REGULATION OF
MULTI-LEVEL SALES

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:

    1. business name, paid-in capital, responsible person, place of office, date of incorporation registration, and a photocopy of the profit-seeking business registration;
    2. locations of the principal place of business and other places of business;
      sales organization or plan;
    3. the date of commencement of multi-level sales activities;
    4. 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;
    5. the content and format of the contract;
    6. items, prices, unit costs, uses and sources of the goods to be sold or services to be provided, and related matters;
    7. other matters specified by the central competent authority.
    8. The format of the "written report" referred to in the preceding paragraph may be prescribed by the central competent authority.