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Newsletter No 18, August 2018
NO.18
Sunpak Delivers Health and Genuine Care

Sunpak Delivers Health and Genuine Care

Sunpak Corporation was established in 1985. Having noticed changes in the food and beverage environment in Taiwan and unbalanced diet among the people, Honorary Chairman Mizue Hayashi introduced from Japan the MIKI nutritional supplements, with which she had had good personal experience. Nutritional supplements such as the MIKI nutritional supplements, which are most suitable for consumption by modern people, are continuously developed in the pursuit of nature and safety. MIKI Prune Extract is certified as Japanese Space Food by the Japan Aerospace Exploration Agency (JAXA). Products such as MIKI Protein 95 Supreme, MIKI ECKO37, and MIKI BIO-C have been marketed for over 30 years in Taiwan and have been greatly loved by many consumers. Sunpak Corporation seeks to share a beautiful, healthy and rich life by promoting excellent products, forming correct dietary and living habits and communicating the importance of health, so as to bring health not only to the Sunpak's members and their families,but also to their friends and relatives.

Address: 4F, No.309, Songjiang Rd., Taipei City 105, Taiwan

4Life Named the “2018 Best Health and Fitness Supplement Provider” in the United States

4Life Named the “2018 Best Health and Fitness Supplement Provider” in the United States

4Life was named the “2018 Best Health and Fitness Supplement Provider” in the United States by Corporate USA Today. This award is regarded as a benchmark in the industry, and the winners are all companies with great reputations. This also has secured 4Life's footing as one of the top-notch health and fitness supplement providers in the world. Since its inception in 1998, the founder David Lisonbee has insisted that all products must be based on science. Science and innovation have always been 4Life's proudest assets. The recognition of Corporate USA Today attests to the long-term commitment to science of 4Life's research and development and quality assurance departments, and the founder David Lisonbee. 4Life's mission is to help people obtain health and wealth, and enjoy a quality life by promoting its patented transfer factor. Thanks to its two major advantages – the uniqueness and monopoly of its transfer factor and its unrivaled commission system in which up to 64% commissions are paid – 4Life has quickly become popular all over the world with rapid growth in revenues and the number of distributors.

Address: 7F, No.11, Sec.4, Nan Jing E. Rd., Taipei City 105, Taiwan

Joint Development of the China Market by Atomy Co., Ltd. and Komar BNH Co., Ltd.

Joint Development of the China Market by Atomy Co., Ltd. and Komar BNH Co., Ltd.

Atomy aims to become a distribution hub in the world with Atomy Co., Ltd. and Komar BNH Co., Ltd. jointly investing close to RMB41 million in a health food manufacturing plant project covering an area of 32.5 acres or 6,554 pings in the Yentai High New Tech Zone in Shandong Province of China Komar BNH Co., Ltd. has been Atomy's joint development partner since its establishment. Atomy, which understands the value of joint development, is seeking co-existence on the basis of trust with suppliers, customers and local communities, by continuously enhancing the competitive-ness of its collaborating vendors and rendering its support to establish stable distribution channels, so as to become a nexus between all producers and consumers in the world.

DSA Creates Illustrations with “10 Seconds Class”

DSA Creates Illustrations with “10 Seconds Class”

With the advent of the era of sharing where "a picture is king and a mobile phone is queen," a lengthy text is far less effective than an interesting picture. Through a simple and well-executed drawing style, the depiction of petty things in daily lives can better strike a chord in the hearts of the fans and inspire their identification with brands. To enhance the ability to communicate with communities, the Direct Selling Association (DSA) has worked with "10-Seconds Class," a well-known Facebook illustration fan page, to present popular education about the Code of Ethics and trends of the direct selling industry through a one-picture-one story approach. This not only visually attracts the attention of newer generations of consumers, but also makes good use of Facebook's sharing mechanisms to expand the reach of communication so that more people will have a refreshed perspective of the direct selling industry and identify the importance of the Code of Ethics and self-regulation of direct selling.

Code of Ethics Evaluation Roadshows Imparted Dispute Resolution Knowledge to Promote Harmony

Code of Ethics Evaluation Roadshows Imparted Dispute Resolution Knowledge to Promote Harmony

When the number of practitioners and sales revenues in the direct selling industry are increasing, disputes are more likely to occur. For any work and industry that deals with people, the most difficult challenge is dispute resolution. The direct selling industry is even more like a unity. The most pressing task currently is not to complain or opt for passive inaction, but rather the Code of Ethics and dispute resolution mechanisms should be properly harnessed to proactively prevent disputes and create an employment and consumption environment which gives peace of mind to distributors and the consumers. The DSA launched the Code of Ethics Evaluation Roadshows for distributors in cooperation with the Multi-Level Marketing Protection Foundation (MLMPF) and completed physical education and training programs in the northern, central and southern parts of Taiwan in July. Officials from the Fair Trade Commission were also invited to support the Code of Ethics so that they can become a standard for the direct selling industry by way of actual implementation.It was expected that the in-depth education and training programs on the Code of Ethics and the Dispute Handling Evaluation System would expand the DSA's training on Seed Instructors for Code of Ethics in the past to all practitioners of the entire direct selling industry, so that the Code of Ethics and their core value can become deeply ingrained in the minds of direct sellers, who will jointly achieve success by avoiding disputes between companies and the consumers, and paying attention to personal reputation and the Code of Ethics.

MOHW Requires Review of Products with Health Claims by Food Operators

MOHW Requires Review of Products with Health Claims by Food Operators

The Ministry of Health and Wealth (MOHW) stated in its FDA-Shih-Tzu No. 1701302193 Circular of July 13, 2018 that if the name or labeling of a food product claims "health," such labeling or claim may mislead the consumers into believing that such a food product is healthier. To avoid misleading the consumers, food operators are requested to review the appropriateness of their product labeling and comply with Article 28 of the Food Safety and Sanitation Administration Act, which prohibits false, exaggerative or misleading food labels, promotions or advertisements in their overall presentation.

[Legal Q&A]
Can direct sellers assert any right under the Consumer Protection Act against direct selling companies?
Direct sellers play three concurrent roles, namely, operators, managers and consumers. However, this only indicates that a direct seller has the characteristics of a consumer. To address the question of whether a direct seller can assert any right under the Consumer Protection Law, it is still necessary to consider if a direct seller is a "consumer" within the meaning of the Consumer Protection Act first. Article 2 of the Consumer Protection Act provides: "'Consumers' shall refer to those who trade or use goods or accept services for the purpose of consumption." In reference to an interpretation of the Consumer Protection Commission, the "consumption" in such provision refers to the circumstances where goods are no longer used for production or sales. To wit, direct sellers are consumers only when they are the individuals who are "end customers" of goods. Meanwhile, the Fair Trade Commission also holds that the roles of a direct seller and a consumer are not mutually exclusive. Based on the foregoing reasons, the current practices are leaning towards the view that whether a direct seller is a consumer should be determined on a case-by-case basis. This means that when direct sellers no longer use goods for production or sales, they will be regarded as "consumers" under the Consumer Protection Law, and vice versa. Although direct sellers have rights and obligations such as promotion of goods, development of organization and facilitation of downline distributors, some direct sellers in practice do not engage in direct selling acts. Or, although they purchase directly sold products as direct sellers, some of the products are used by themselves. Therefore, when direct sellers reserve the products for their own use without any further production or sales, they will meet the criteria for "end consumers" and are the "consumers" within the meaning of the Consumer Protection Act. In case of any consumption dispute between a direct seller and a direct selling company, the direct seller can assert rights against the direct selling company in accordance with the Consumer Protection Act.
[Excerpted from the Practical Direct Selling Legal Issues]

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