Shall multi-level martket (MLM) participants be fined for carrying out sale without obtaining a membership card in Vietnam?

Shall MLM participants be fined for carrying out sale without obtaining a membership card in Vietnam?

Pursuant to Clause 1, Article 73 of the Decree 98/2020/NĐ-CP stipulating violations against regulations on MLM in Vietnam as follows:

1. A fine ranging from VND 3.000.000 to VND 5.000.000 shall be imposed upon a participant in the MLM for committing one of the following violations:

a) Carrying out marketing, sale and recruitment of downline distributors before obtaining a membership card;

b) Failing to present the membership card before introducing or selling products.

Pursuant to Point b, Clause 1, Article 3 of the Decree 17/2022/NĐ-CP stipulating as follows:

b) Fines mentioned under Chapter II hereof apply to administrative violations committed by individual offenders, except for administrative violations under Article 33, Article 35, Article 68, Article 70, Clauses 6, 7, 8, and 9 Article 73, Clauses 6, 7, and 8 Article 77 hereof. Organization offenders shall be met with twice the fines applicable to individual offenders.

As regulations above, if you directly carry out sale in MLM without obtaining a membership, you shall be fined from VND 3.000.000 to VND 5.000.000.

Is it free for MLM participants to obtain a membership card in Vietnam?

Pursuant to Clause 2, Article 33 of the Decree 98/2020/NĐ-CP stipulating violations against regulations on MLM in Vietnam as follows:

2. The MLM company shall issue membership cards free of charge to participants.

Therefore, MLM participants shall obtain a membership card for free.

Best regards!