Article 17
A multi-level sales enterprise may not engage in any of the following activities:
requiring a participant to pay any fee obviously incommensurate with the cost
in the name of training, seminars, social activities, meetings, or other like
activities;
requiring a participant to pay or undertake any security deposit, breach penalty,
or other liability, where such is obviously unreasonable;
requiring a participant to purchase goods in a quantity that would obviously
be impossible for an average person to sell out in a short period, unless it
is agreed that the price shall be paid only after the goods are re-sold;
unjustifiably withholding commission, bonus, or other economic benefit payable
to a participant after rescission or termination of the contract;
stipulating that a participant shall be paid greater benefits only after he
pays training fees obviously incommensurate with the cost or pays other obviously
unjustifiable consideration;
giving specific persons preferential treatment in a manner contrary to the
multi-level sales organization or plan, such that the commission, bonus, or
other economic benefits that should be available to other participants would
be diminished;
improperly hindering a participant from returning goods arising from rescinding
the contract or terminating the contract;
requiring a participant to undertake obviously unfair obligations.
The provisions of the preceding paragraph shall apply mutatis mutandis to participants.