In the amendment of “the Regulations for the Establishment and Administration of the Multi-level Marketing Enterprises and Participants Protection Institute” (October 2019), the Multi-Level Marketing Protection Foundation (hereinafter as “the Foundation”) is endowed with a mission to deal with matters related to guidance on and evaluation of the dispute resolution mechanism between MLM enterprises and participants. Hence the Foundation has formulated “the Operational Directions for Guidance of the Implementation of the Dispute Resolution Mechanism between Multi-level Marketing Enterprises and Participants” and “the Operational Directions for Evaluation of the Implementation of the Dispute Resolution Mechanism between Multi-level Marketing Enterprises and Participants” to serve as a means to fulfill its mission of guidance and evaluation.
In order to reduce the disputes between MLM enterprises and participants and to ensure proper handling of them once occurred, the Foundation has guided MLM enterprises to establish a new mechanism or adjust their existing mechanism for handling disputes through methods such as mediation, decree advocacy, documents review, and provision of advice. So far, over 200 MLM enterprises have participated in the Foundation’s guidance program.
However, after guidance, the implementation of the dispute resolution mechanism depends on whether or not MLM enterprises have actually handled disputes in accordance with the dispute resolution mechanism by informing MLM participants of the related laws and regulations in advance and conducting dispute resolution procedures once disputes occurred. In order to encourage MLM enterprises to keep improving, starting from this fiscal year, the Foundation has tried to evaluate the dispute resolution mechanism implemented by MLM enterprises through methods such as on-site visits and production of the evaluation report in order to ensure a fair and reasonable dispute resolution mechanism in the MLM industry so as to safeguard the rights and interests of MLM enterprises and participants and perfect the transaction order and overall development of the MLM industry.
For MLM enterprises, what matters is how to establish a fair and reasonable dispute resolution mechanism in order to protect the rights and interests of MLM enterprises and participants and achieve the goal of perfecting the transaction order and overall development of the MLM industry. The following points may serve as reference for MLM enterprises to correctly understand the dispute resolution evaluation mechanism:
1.Since the evaluation scope does not go beyond the contents of guidance on the dispute resolution mechanism provided by the Foundation last year, MLM enterprises only need to understand and implement the contents of guidance offered by the Foundation, without having to worry about being overburdened.
2.The key evaluation contents include:
(1) Establishment of general systems for dispute resolution: For example, whether or not the MLM enterprise has appointed a dedicated team or unit to handle disputes, set up a complaint hotline and dedicated email or paper mail complaint channels for use by MLM participants, established violation cases or punishment standards, and informed MLM participants of the provisions of related laws and regulations.
(2) Definition of specific violation cases: For example, whether or not the MLM enterprise has established the Code of Ethics to regulate such MLM behaviors as misleading, deceptive, or exaggerating statements, falsification of documents, manipulation of compansation plans, or improper stockpiling.
(3) Rights Protection of individuals involved in a specific case: For example, whether or not the MLM enterprise has provided individuals involved in a dispute with an opportunity to explain their point of view and reasonable time to give response.
(4) Provision of additional information: For example, whether or not the MLM enterprise has provided MLM participants with information on filing an appeal and resorting to other dispute resolution mechanisms.
As stated above, the evaluation contents are basically within the scope of the existing contracts and Code of Ethics already being observed by MLM enterprises. The Code of Ethics Committee of the DSA will also provide guidance to all member companies for compliance with the above-mentioned evaluation contents to make it easier for them to pass the evaluation criteria. In addition, the DSA encourages all member companies to pay careful attention to the activities of the Code of Ethics Committee. Through activities of such kind, the DSA would wholeheartedly help member companies implement the dispute resolution mechanism in a better manner so as to not only safeguard the rights and interests of MLM enterprises and participants, but also perfect the transaction order and overall development of the MLM industry.
The German PM International was established by its incumbent CEO Mr. Rolf Sorg in 1993. Since then, PM International has developed a series of supplements (FitLine) and skincare products (FitLine Skin), which have been marketed to over 40 countries around the world. Being dedicated to developing unique innovative products, PM International has stepped into such fields as health food, beauty care products, and fitness food. Upholding its unique product belief – “Pursuing health, energy, and beauty from within”, PM International has developed products that satisfy the needs of numerous consumers.
In 2021, PM International was ranked No. 10 in DSN Global 100 and honored with the Bravo Award for Growth. In 2020, among other international direct selling companies, PM International achieved the highest sales revenue increase. For the first five months of this year, its sales growth has been over 60%.
In June 2021, PM International held the World Management Conference (WMC 2021) in a unique and compound way, with many high-rank leaders directly participating at the Europe venue and over 6,000 leaders (international sales manager and above) from around the world participating through PM TV channel. At the Conference, PM International announced its global development agenda, personalized startup group, and digital new dimension. The most inspiring moment was that more than 3,000 new high-rank leaders had achieved some success and been recognized with mere “online” business efforts.
Several draft amendments to the Multi-level Marketing Supervision Act have been proposed by legislators from last year to the first half of this year. Apart from the electronic contract, that has achieved a consensus among various organizations in the industry, other issues, such as permission system, compulsory membership, and position of the Multi-Level Marketing Protection Foundation (MLMPF), have not yet reached an agreement in opinions from various parties.
In order to make the voices of the industry be considered in the proposals of legislators and promote a beneficial legislation direction, apart from actively participating in various cross-party workshops and meetings, the DSA has intensively visited various legislators of the Economics Committee of the Legislative Yuan to express the voices and thoughts of the industry. Currently, due to the severity of COVID-19 pandemic in Taiwan, the clause-by-clause review and voting of the draft amendment originally scheduled at the end of May have been postponed to the next session.
The issue of amendment would certainly have a significant impact on a wide variety of direct selling companies, their distributors and consumers. Its influence on Taiwan’s economics would also become a focus of attention from various media in Taiwan. Taking advantage of the time period provided by the postponement of legislation, various industry associations, competent authorities and academic groups are actively conducting exchanges through various channels in the hope of achieving a consensus through multiple exchanges and communications so as to allow the direct selling industry to promote legislation in the direction of co-prosperity.
Before the discussion of the draft amendment in the next session of the Legislative Yuan, the DSA would continue to make external communications and negotiations to promote amendment content that is conducive to promoting the electronic contract and drawing an industry consensus so as to create a legal framework that is favorable to a healthy development of the industry market.
Before we knew it, 2021 has moved into its second half. In spite of the considerable challenge in the bigger environment brought about by COVID-19 pandemic, the Public Affairs Committee of the DSA has been looking to the future together with everyone. To continue the favorable comments in the past, in the second half of 2021, the DSA will launch two key events – Code of Ethics Promotion and CSR Social Feedback programs. For the Code of Ethics Promotion program this year, the DSA will invite Taipei Quyiyuan, a famous local crosstalk group, to demonstrate the content and spirit of the Code of Ethics in an interesting and lively way with their professional acting skills. As for the CSR Social Feedback program, through innovative event planning, the DSA will invite secret guests to do charity with us all. So, please stay tuned for the appearance of our secret guests. In addition, all DSA hot news will be first published on DSA’s Facebook Fan Page. If you want to learn about firsthand news or any benefits & discounts, you can search for “Taiwan ROC Direct Selling Association” on Facebook so that you would not miss any wonderful moments.
In order to make more distributors and consumers understand the content and spirit of the Code of Ethics, the Code of Ethics Committee of the DSA will launch an event – “Big Questions on COE – Answer Questions for Lucky Draw iPhone” during a period from July 1 to October 31, 2021. All are welcome to log on the DSA Facebook Fan Page to answer questions. As long as you answer 3 questions correctly, you will have the opportunity to get lucky draw gifts for the current month. Not only will you be able to renew your opportunity for lucky draw gifts each month, after the end of the entire event, all participants will have the opportunity to get the lucky draw grand prize – iPhone 12. Whether you are a distributor upholding high ethical standards or a member of the public who just wants to know about the Code of Ethics, you are welcome to join in the event – “Answer Questions for Lucky Draw iPhone!” Please pay close attention to DSA’s FB to stay tuned for updates on benefits or gifts available there.
Event URL: https://event.dsa.org.tw/