SUPERVISORY REGULATION OF
MULTI-LEVEL SALES

Article 18

For purposes of regulating the activities of its participants in respect of multi-level sales, a multi-level sales enterprise shall stipulate that the following are breaches of contract by the participant, and shall prescribe methods for handling such breaches and faithfully enforce them:

promoting or selling goods or services, or recruiting participants to the sales organization, by deceptive or misleading means;
raising funds from other persons in the name of the multi-level sales enterprise or through its organization;
engaging in sales activities by means that run counter to public order or good morals;
affecting the market trading order or creating heavy losses to consumers by improper direct sales calls;
engaging in sales activities that violate the Criminal Code or other laws or regulations governing industry and commerce.