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Order of the State Administration for Inductry and Commerce
(No. 73)
The Regulations on the Administration over Pyramid Marketing, as adopted at the executive meeting of the State Administration for Industry and Commerce, are hereby promulgated and shall come into force as of the date of promulgation.
Director: Wang Zunfu
January 10th, 1997
REGULATIONS ON THE ADMINISTRATION OVER PYRAMID MARKETING
| | 中华人民共和国国家工商行政管理局令
（第７３号）
《传销管理办法》已经国家工商行政管理局局务会议通过，现予公布，自公布之日起施行。
局长 王众孚
一九九七年一月十日
传销管理办法
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CHAPTER I GENERAL PROVISIONS
| | 第一章 总则
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Article 1 The regulations have been formulated according to State laws, regulations and relevant policies with a view to strengthening the supervision and control of pyramid marketing to maintain normal order of the market economy and protect legal rights and interests of consumers.
| | 第一条 为加强对传销活动的监督管理，维护市场经济秩序，保护消费者的合法权益，根据国家法律、法规及有关政策的规定，制定本办法。
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Article 2 Pyramid marketing refers to direct selling by a production enterprise of its products to consumers through the medium of pyramid sales agents without going through shops. It includes both multi-level and single-level pyramid marketings.
Multi-level pyramid marketing refers to such a kind of marketing through multiple levels (two or more levels) of sales agents with the product concerned being transmitted from one to other level.
Single-level pyramid marketing refers to the same kind of marketing through only one level of sales agents.
| | 第二条 传销是生产企业不通过店铺销售，而由传销员将本企业产品直接销售给消费者的经营方式。它包括多层次传销和单层次传销。
多层次传销，是指生产企业不通过店铺销售，而通过发展两个层次以上的传销员并由传销员将本企业的产品直接销售给消费者的一种经营方式。
单层次传销，是指生产企业不通过店铺销售，而通过发展一个层次的传销员并由传销员将本企业的产品直接销售给消费者的一种经营方式。
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Article 3 An enterprise should get the examination and approval of relative administration for industry and commerce in undertaking such kind of marketing.
Administrations for industry and commerce shall exercise supervision and control over pyramid marketing activities.
| | 第三条 企业从事传销活动必须经工商行政管理机关核准登记。
工商行政管理机关对传销活动进行监督管理。
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Article 4 Foreign enterprises and individuals are forbidden to engage in pyramid marketing within the territory of the People's Republic of China.
| | 第四条 禁止外国（地区）企业及个人在中华人民共和国境内直接从事传销活动。
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Article 5 All enterprises and individuals engaged in pyramid marketing within the territory of the People's Republic of China must observe the provisions of this set of regulations.
| | 第五条 凡在中华人民共和国境内从事传销活动的企业和个人，必须遵守本办法的规定。
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CHAPTER II APPROVAL FOR REGISTRATION OF ENTERPRISES ENGAGED IN PYRAMID MARKETING
| | 第二章 传销企业的核准登记
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Article 6 For engaging in pyramid marketing, an enterprise should meet the following condition:
| | 第六条 从事传销的企业应当符合下列条件：
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1. It has the status of a corporate legal person;
| | （一）具有企业法人资格；
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2. It has at least a registered capital of RMB5 million;
| | （二）企业注册资本在５００万元人民币以上；
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3. It sells products it produces within the territory of China;
| | （三）销售本企业在中国境内生产的产品；
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4. Quality of its products has been verified as up to standard;
| | （四）产品质量经有关部门检验合格；
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5. It has a pyramid marketing plan and a sound pyramid sales agents management system.
| | （五）有符合规定的传销计划以及完善的传销员管理制度。
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Article 7 For carrying out pyramid marketing, an enterprise and its subsidiaries should file an application with an administration for industry and commerce with which it was registered to be examined by relative administrations of the province (autonomous region or municipality under the direct administration of the State Council) where the enterprise concerned resides. After verified as being qualified, the application shall be submitted to the State Administration for Industry and Commerce for approval.
| | 第七条 企业及其分支机构从事传销的，应当预先向其原登记注册的工商行政管理机关提出申请，并由其所属省（自治区、直辖市）工商行政管理局审核。经审核合格的，报国家工商行政管理局批准。
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Article 8 In applying for pyramid marketing, an enterprise should submit the following documents:
| | 第八条 申请传销的企业应当向核准登记机关提交下列文件和材料：
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1. An application form signed by the legal representative;
| | （一）法定代表人签署的申请书；
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2. Business license of the corporate legal person or business licenses of its subsidiaries;
| | （二）《企业法人营业执照》或者分支机构《营业执照》；
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3. Business conditions, including investment scale, production sites, technical conditions and subsidiaries;
| | （三）企业状况，包括投资规模、生产场地、技术条件、分支机构等；
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4. A plan for the marketing operations, including requirements and formalities for participating in pyramid selling, computation procedures in concern of payments to pyramid sales agents, methods of withdrawal from pyramid marketing, code of conduct for pyramid sales agents and method of training and management and other related materials;
| | （四）传销运作方案，包括参加传销的条件及手续、传销员的报酬计算方法、退出传销的办法、传销员的行为准则和培训管理办法及有关材料；
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5. Areas for pyramid marketing;
| | （五）申请传销的地区；
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6. Varieties, specifications and trademarks of the products for pyramid marketing;
| | （六）传销产品品种、型号、商标；
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7. Certificates certifying the quality of the products for pyramid marketing;
| | （七）传销产品的质量检验合格证明；
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8. Costs and selling prices of the products for pyramid marketing;
| | （八）传销产品的成本价格和销售价格；
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9. Rules for returning goods, claiming for damages and after-sales services;
| | （九）退货、索赔和售后服务办法；
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10. Sample contracts between the enterprise and pyramid sales agents and sample of the certificates for the pyramid agents;
| | （十）传销企业与传销员的合同样本、传销员证样本；
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11. Other materials deemed as necessary by laws and regulations or by organizations of examination and approval.
The term "organizations of examination and approval" used in the preceding paragraph refers to the administration for industry and commerce with which the enterprise concerned is registered, provincial (autonomous regional and municipal) administrations for industry and commerce and the State Administration for Industry and Commerce (the same below).
| | （十一）法律、法规规定或者核准登记机关认为需要提交的其他材料。
前款所称核准登记机关指原登记注册的工商行政管理机关、省（自治区、直辖市）工商行政管理局和国家工商行政管理局（下同）。
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Article 9 The State Administration for Industry and Commerce shall, according to the relevant regulations and the provisions of this set of regulations, examine the qualification of an enterprise for multi-level or single-level pyramid marketing after such a qualification has been verified by provincial (autonomous regional and municipal) administrations for industry and commerce and take the decision of approval or disapproval. It shall issue a Certificate of Multi-level Pyramid Marketing or Certificate of Single-Level Pyramid Marketing to the enterprise concerned if the decision of approval is made.
An enterprise approved to engage in multi-level or one-level pyramid marketing should, within 15 days after receiving the Certificate of Multi-level Pyramid Marketing or Certificate of Single-Level Pyramid Marketing, go through registration procedures for altering the line of business and methods of operation.
| | 第九条 国家工商行政管理局根据国家的有关规定和本办法，对经省（自治区、直辖市）工商行政管理局审核合格的多层次传销或者单层次传销的申请企业进行审查，作出是否批准的决定。对批准的多层次传销企业或者单层次传销企业分别颁发《多层次传销经营核准证书》、《单层次传销经营核准证书》。
经批准的多层次传销企业或者单层次传销企业，应当自收到《多层次传销经营核准证书》或者《单层次传销经营核准证书》之日起１５日内，向原登记注册的工商行政管理机关办理经营范围和经营方式的变更登记。
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Article 10 An enterprise approved to engage in multi-level or single-level pyramid marketing should change the registration according to the procedures provided for in Article 7 of this set of regulations if it increases or reduces subsidiaries for pyramid marketing, changes the products for or terminates the pyramid marketing.
In changing the contents provided for in 4, 8, 9 and 10 of Article 8 of this set of regulations, an enterprise should report to the organization of examination and approval for the record within 30 days after the changes.
| | 第十条 经批准的传销企业增加或者减少传销的分支机构、变更传销产品品种范围或者终止传销的，应当按本办法第七条规定的程序办理有关变更登记手续。
经批准的传销企业变更本办法第八条第（四）项、第（八）项、第（九）项、第（十）项内容的，应当自变更之日起３０日内向核准登记机关备案。
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Article 11 An enterprise engaging in pyramid marketing should not transfer or consign its right of the marketing concerned.
It is forbidden for an enterprise engaged in single-level pyramid marketing to engage in multi-level pyramid marketing.
| | 第十一条 传销企业不得转租、转让传销经营权。
禁止单层次传销企业从事多层次传销活动。
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CHAPTER III PARTICIPANTS IN PYRAMID MARKETING ACTIVITIES
| | 第三章 传销活动参加人
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Article 12 Citizens at the age of 18 and above and with the full ability of performing civil acts may serve as agents for a pyramid marketing.
The following people are not allowed to serve as such agents:
| | 第十二条 年满１８周岁，具备完全民事行为能力的公民，可以作为传销员。
下列人员不得作为传销员：
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1. Government functionaries;
| | （一）机关工作人员；
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2. Military persons in service;
| | （二）现役军人；
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3. Students of full-time schools;
| | （三）全日制在校学生；
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4. Other people who are forbidden to engage in part-time sales by law and regulations.
Multi-level pyramid sales agents should have permanent resident ID card in the administrative area in which the enterprise for the pyramid marketing resides.
| | （四）法律、法规规定不得兼职经商的其他人员。
多层次传销企业的传销员必须具有该企业从事多层次传销的行政区域内的常住户口。
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Article 13 An enterprise engaged in pyramid marketing should inform its sales agents of the following matters before they start operations:
| | 第十三条 传销企业应当在传销员参加传销之前如实告知下列事项：
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1. Items registered in the Business License of Corporate Legal Person and the Business Licenses of its subsidiaries;
| | （一）《企业法人营业执照》及分支机构《营业执照》核准的登记事项；
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2. The varieties of products to be put on sales by the pyramid marketing and the areas for the marketing as approved by the administration for industry and commerce concerned;
| | （二）工商行政管理机关核准的传销产品品种及传销地区；
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3. Development and plans for pyramid marketing;
| | （三）传销发展状况与计划；
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4. Operational rules and notices for the trading;
| | （四）传销企业的运作规则与交易须知；
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5. Prices, properties, uses and results of quality inspection of the products for pyramid marketing;
| | （五）传销产品的价格、性能、用途、质量检测结果等；
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6. Requirements for participating in pyramid marketing.
The matters mentioned above should be affirmed by the agents concerned of notice in a written form.
| | （六）参加传销的条件。
前款告知事项需得到传销员的书面确认。
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Article 14 An enterprise with pyramid marketing operations should sign written contracts with pyramid sales agents to define each other's rights and obligations. Such a contract should mainly contain the following:
| | 第十四条 传销企业应当与传销员订立书面合同，明确双方的权利义务。合同主要条款应当包括：
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1. Rights and obligations of pyramid sales agents;
| | （一）传销员的权利和义务；
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2. Conditions, method of computation and procedures of payments to the agents concerned and the means of withholding their individual income taxes concerned;
| | （二）传销员获得报酬的条件、计算方法、发放程序以及代扣代缴个人所得税的方法；
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3. Responsibility of the quality of products;
| | （三）产品质量的责任；
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4. Time limit, procedures and costs of returning of products;
．．．．．． | | （四）产品退货的期限、方法和费用承担；
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