Point 1
The Fair Trade Commission, Executive Yuan (hereinafter referred to as "the Commission") in order to facilitate multi-level sales enterprises filing reports for record and amendments, in accordance with the authority of, Article 5(2) and Article 7(2) of the Supervisory Regulations Governing Multi-level Sales(hereinafter referred to as "the Regulations"), hereby promulgates these procedures.

Point 2
Enterprises required to file report for record and amendment, should complete the application process on their own initiative through the "Multi-Level Sales Administration System" (hereinafter referred to as "the Administration System") by electronic means. But in the event that any of the following situations is applicable, paper-based written reports may be submitted in lieu thereof:
a. for reports filed within three months from the date on which these procedures become effective;
b. when the Administration System is experiencing unscheduled downtime or is otherwise not operating;
c. the applicant enterprise for reasons of force majeure or other special considerations is unable to use the Administration System, and has applied to the Commission in writing and received advance approval;
d. other circumstances which have been approved by the Commission.

Point 3
Enterprises eligible to rely on the alternate exceptional procedures outlined in the preceding point, should submit their application forms containing the materials specified in Article 5 and 7 of the Regulation which must be complete and truthful in all material respects and should contain all required appendices, in A4 size paper printed and bound into booklet form, and submitted by registered mail to the Commission.
The paper-based application forms for reports filing for record and amendment are attached as Appendix 1 and Appendix 2.

Point 4
Enterprises may login to the Administration System by any one of the following means:
a. Certificated entry login: by use of an electronic commercial certificate authenticated by the Ministry of Economic Affairs; or
b. User account login: enterprises can apply in writing to the Commission for a user account and password permitting login. The application should be completed on the password application form, with the official corporate seal affixed thereon, and the personal seal of the responsible officer, and submitted along with the documents pertaining to the corporation and business registration. The password application form is attached as Appendix 3.

Point 5
Pursuant to Article 5(1) of the Regulations, enterprises should ensure their applications include the following materials:
a. Enterprise formation documentation: besides the name of the enterprise, the actual paid in capital, the representative or legally responsible natural person, location, date of establishmen, and contact information including enterprise telephone numbers, email addresses, contact names and telephone numbers, as well as the documents pertaining to the corporation and business registration.
b. Place of business: primary place of business and other business operating places where the enterprise conducts business, including the names thereof, addresses and phone numbers.
c. The date of commencement of multi-level sales operations.
d. Conditions for participation: conditions for participating in the multi-level sales plan or organization, including the types and amounts.
e. Multi-level sales structure:
i. Multi-level sales organization or plan: the name for each level of the multi-level sales organization, requirements for accession to each level and conditions for promotion.
ii. Commissions, bonuses, and other economic benefits: descriptive contents of commissions, bonuses, and other economic benefits, conditions for earning such remuneration, methods of calculation, and estimates for the highest percentage such payments constitute within the overall sales income (including an accounting explanation of the method of calculation thereof).
f. Participation agreement terms and conditions and the participation contract form: besides the requirements of Points 4, 5, 7, and 8 of the directions, the contract should include such terms and conditions as may be required pursuant to the provisions regulating the conduct of multi-level sales, conditions, terms, and scope of warranties against defects of the goods or services; conditions of withdrawal by a participant from the organization or plan, and rights and obligations arising from the withdrawal (pursuant to Articles 12 and 13 of the Regulations), refund procedures in instances where the participant is responsible (pursuant to Article 14 of the Regulations), written parental/guardian consent form for participation of minors (the template for the model parental/guardian consent form is attached as Appendix 4, and is required pursuant to Article 16 of the Regulations), and details of what constitutes material breaches and the procedures for handling participant breaches of the participation agreement (required pursuant to Article 18 of the Regulations), and a complete version of the written participation agreement and all required materials noted above.
g. Products or services for sale: the itemized products or services for sale, prices, unit costs, uses of the product or service, place of origin or source, and bonus Point systems and should provide relevant explanatory materials; and for items sourced overseas, copies of the customs documentation related to the imports should be provided; and for items which must inspected or authorized pursuant to other law, the documentation related to such applications for approval or authorization must also be included; and where participation in the multi-level sales plan or organization results in the establishment of third party contracts for the provision of products or services, the terms and conditions of such contracts should also be submitted.
h. Standard governing degree of damage: for enterprises which have a partial refund policy providing a standard for determining the degree of use or damage of a product or service pursuant to Article 23-2 or 23-3 of the the Fair Trade Act (hereinafter referred to as the Act), provide the standard and its contents.

Point 6
When enterprises file for record pursuant to the immediately preceding point, if their application is found materially incomplete in any respect or having been requested to provide additional supplemental amendments and not having done so in the manner or as timely prescribed, then in accordance with Article 6 of the Regulations, the Reports shall be deemed to have not been filed, and the Commission may return the original reports, and order the enterprises to file a new complete one.
The flowchart of the report processes for the preceding section is attached as Appendix 5.

Point 7
Enterprises subject to the requirements of Article 7(1) of the Regulations to f file report for amendments of record, should provide truthful supplemental information, the effective date of such changes, specific explanation of the nature of the changes, and relevant material pertaining to the changes:
a. Where there are amendments in the the name of the enterprise, the actual paid in capital, the representative or legally responsible natural person, location, the enterprise filer should provide the documents pertaining to the corporation and business registration.
b. Where there are amendments in the participation agreement terms and conditions or the contract form, the enterprise filer should provide a complete version of the participation contract.
c. Where there are amendments in the multi-level sales structure (including the multi-level sales organization or plan, commissions, bonuses, other economic benefits, and other matters), conditions for participation, standards for determining the degree of use or damage of products or services returned for refund, the enterprises shall provide a complete version of the participation contract.
d. Enterprises with changes in their products or services for sale, should provide an explanation of the changes, the customs documentation related to the imports, documents related to approvals or authorizations for the products or services to be sold, and descriptions of the contents of any contracts between the participants and any third parties.
For enterprises required to file report for amendments of record based on the preceding section, the Commission may, in its discretion, order additional supplemental information to complete the reports.
The flowchart of the preceding two Points processes is attached as Appendix 6.

Point 8
Enterprises filing report for record and amendment through the Administration System, providing information as required by Articles 5 or 7 of the Regulations, should submit their documentation files by electronic means, and the formatting of the files, size of the files, and methods of electronic transmission, should comply with the rules of the Commission.

Point 9
For enterprises which have already filed reports and been recorded by the Commission before the effective date of the Directions, within 3 months after the Directions take effect the enterprise should login to the Administration System and resubmit the following additional information:
a. The email addresses for the enterprise, and name of their contact person and their telephone number.
b. Conditions for participation in the multi-level sales plan or organization.
c. For enterprises which have a partial refund policy providing a standard for determining the degree of use or damage of a product or service pursuant to Article 23-2 or 23-3 of the Act, provide the standard and its contents.
d. All material relevant to their prior applications to the Commission regarding their multi-level sales structure, including the organization or plan, commissions, bonuses, other economic benefits, and other matters.
e. All of the required materials in the existing application with the Commission including a complete participation agreement should be resubmitted by uploading electronic files.
f. Other electronic files of original application materials and appendices stored in Administration System, if such files do not conform to or lack some of the materials submitted by the enterprise to the Commission electronically.
For enterprises complying with the preceding section to resubmit, the Commission may, in its discretion, order supplementation to complete the resubmission.
The flowchart of the resubmission processes for the preceding two sections is attached as Appendix 7.

Point 10
Enterprises relying on Point 2 supra, who submit their reports in paper-based writing, should within seven days after expiry of the cause of their reliance on said point, on their own initiative, login to the Administration System, and in conformity to Points 5, 7, and 8, finish resubmission of all their complete report materials.
For enterprises complying with the preceding section to resubmit, the Commission may, in its discretion, order supplementation to complete the application.

Point 11
For enterprises which must supplement their reports based on Points 9 or 10, where the electronic submissions vary from the paper-based written reports to the Commission, the paper-based written ones will be considered as authoritative.

Point 12
Enterprises without completing reports, amendments and resubmission thereto, or supplementation thereof, pursuant to Points 5, 7, 9 or 10, shall not be permitted to further amend their filings.

Point 13
For reports, amendments and resubmission thereto, or supplementation thereof, submitted to the Commission, through the Administration System, responses, notices ordering supplementation or correction, or rejection notices, may be issued in electronic form solely, and no paper-based document will be provided as notice.
The electronic responses and notices from the Commission noted in the preceding section, will be considered to have been received as of the time they enter into the enterprise’s email information systems for purposes of calculating the time of notice.

Point 14
Enterprises submitting electronic files through the Administration System, will be considered to have submitted the files at the time the electronic files enter the Commission’s Administration System as the time of receipt.

Point 15
Enterprises should ensure that the email accounts they provide are fully capable and operating normally to receive emails, and should timely review the responses and notices from the Commission after using the Administration System to transmit electronic documents.

Point 16
Enterprises which misplace the password for the Administration System as approved by the Commission, shall apply in accordance with Point 4(2) for a replacement password.