Article 1(Purpose) #
The purpose of this Act is to prescribe “Door-To-Door Sales, Etc Act”, and matters delegated by the Act and those necessary for the enforcement thereof.
Article 2(Place of Business) #
“Place of business prescribed by ordinance of the Prime Minister” under Article 2 (1) 2 of the“Door-To-Door Sales, Etc Act”(hereinafter referred to as "The Act"), refers to the following place, regardless of what they’re called such as sales office, agency, branch, local office, etc.
1. It’s required to continue business for more than 3 months in a fixed place of his/her own or rented or occupied under permission. However, those period for not being able to do business don’t count due to inevitable reasons such as natural disaster, etc.
2. It’s required to have facilities for sales
3. It’s required to allow for consumers to visit at their will during business.
4. It’s required to maintain condition where consumers can choose goods or service (hereinafter referred to as “goods, etc”) at their will in place of business.
Article 3(Inviting Methods of Subscription) #
“the methods prescribed by ordinance of the Prime Minister” under the Article 2(3) of the Act are one of the followings.
1. To bring consumers from other places to the place of business together by means of solicitation, etc.
2. To make consumers visit to the place of business by means of providing free or low priced goods without noticing purpose of selling main goods, etc.
3. To make consumers visit to the place of business by means of soliciting for selling or providing goods under absolute better conditions which other consumers cannot enjoy.
Article 4(Multi-level Marketing Organization) #
① According to the subparagraph 1 of the Article 2(2), of the “Door-To-Door Sales, Etc. Act Enforcement Decree”(hereinafter referred to as “the Enforcement Decree”), in case of payment method of support allowance for salesperson, is same as more than 3-stage of the salesman or similar, payment method of support allowance shall meet all following requirements of each subparagraph below.
1. Support allowance shall be paid to salesperson who does direct selling.
2. Support allowance shall be affected by not only low-level-salespersons’ sales results that directly belongs to the person, but also other salespersons’ sales results which affect support allowance of that low-level-salesperson.
② Pursuant to Article 2 (1) 2 and Article 2 (2) of the Enforcement Decree, that sales organization is same as more than 3-stage or managed similarly means that consignors being delegated sales or organization management influence on recruiting and managing to the low-level-salesperson and payment of support allowance as a proxy or on supporting · monitoring the task of the low-level-salesman. In this case, the level from consignors to consignee shall be more than 3-stage.
Article 5(Report on Door-To-Door Distributor, etc.) #
① In accordance to Article 5 (1) other than each subparagraph and Article 8 (1) of the Enforcement Decree, door-to-door distributor or telemarketing sales provider (hereinafter referred to as door-to-door distributor, etc.), who seeking to register, shall submit the Report of the Attached Form No. 1. to Fair Trade Commission or the Mayer of Special Autonomous City, the Governor of Special Self-governing Province, the Mayor of a city, head of a Gun, head of a Gu. (referred to as the Head of the Autonomous Gu). In the Report Form on Door-To-Door Sales, Telemarketing Sales of the Attached Form No. 1, should be included report form with evidentiary documents for assets, debts and capital(it applies only to companies of the “Commercial law” and includes electronic documents)
② Once received the report in the paragraph (1), Fair Trade Commission or the Mayer of Special Autonomous City, the Governor of Special Self-governing Province, the Mayor of a city, head of a Gun, head of a Gu. shall issue the Certificate of Door-to-Door Sales Report of the Attachment Form No.2 or the Certificate of Telemarketing Sales Report in the Attachment Form No.3
Article 6(Report of Amendment on Door-To-Door Distributor, etc.) #
Door-to-door distributor, etc. seeking to report of amendment, pursuant to Article 5(2) of the Act and Article 8(4), of the Enforcement Decree, shall submit the Report form of Amendment on Door-To-Door Sales, Telemarketing Sales of the Attachment Form No. 4 to Fair Trade Commission or the Mayer of Special Autonomous City, the Governor of Special Self-governing Province, the Mayor of a city, head of a Gun, head of a Gu. In that paper, it should be included evidentiary documents for amendment and the Certificate of Door-To-Door Sales and/or Telemarketing Sales(If amendment needed only).
Article 7(Report of Suspension or Closure etc. of for Door-To-Door Distributor) #
A Door-to-door distributor, etc. who intend to suspend or close or restart the business pursuant to Article 5(3) of the Act and Article 8 (5) of the Enforcement Decree, shall submit the Report Form on Door-To-Door Distributor, Telemarketing Sales(of Temporary Closure, Closure, Reopen) of the Attachment Form No. 5, to Fair Trade Commission or the Mayer of Special Autonomous City, the Governor of Special Self-governing Province, the Mayor of a city, head of a Gun, head of a Gu. In case of reporting closure of business, the original Certificate of Door-To-Door Sales and/or Telemarketing Sales shall be attached.
Article 8(Report By Electronic Document) #
① Door-to-door distributor, etc. who intend to report through electronic document pursuant to Article 8 (6) of the Enforcement Decree, can use digital signature through official digital signature pursuant to Article 2(3) of “Digital Signature Act” or the authentication system using encrypted digital signature technology which is equivalent to the official one.
② Mayer of Special Autonomous City, the Governor of Special Self-governing Province, the Mayor of a city, head of a Gun, head of a Gu, shall construct their own managed webpage access easily to the information processing system prescribed by Fair Trade Commission for their own web sites in order to process works related to digital signature pursuant to paragraph (1)
Article 9(Methods of Drawing Up a List of Door-To-Door Salesman, etc) #
① The list of door-to-door salesman and telemarketer (hereinafter referred to as “door-to-door salesman”, etc.) pursuant to Article 6(1) and Article 29 (3) of the Act or support door-to-door salesman shall include name, birthday, address and contact number(Including email address if any) of door-to-door salesman, etc. and support door-to-door salesman.
② Where door-to-door salesman, etc. or support door-to-door salesman operates a web site, consumers shall be allowed to see easily which door-to-door salesman, etc. or support door-to-door salesman belongs to which door-to-door distributor, etc. or support door-to-door distributor.
Article 10(Documents Needed For Exercising Rights for Subscription Withdrawal and Contract Cancellation) #
“The things prescribed by ordinance of the Prime Minister“ in the Article 7(6) 1 of the Act refers the Notice of subscription withdrawalㆍcontract cancellation of the Attachment Form No.6
Article 11(Application and Accompanying Documents For Registration of Multi-level Marketing Business or Support Door-To-Door Sales) #
① Pursuant to Article 13 (1), Article 29 (3) of the Act and Article 20 (1) of the Enforcement Decree, Multi-level marketing business or support door-to-door distributor who intend to register, shall submit the Registration Application Form of Multi-level Marketing Business, Support door-to-door Business of the Attached Form No.7, to the Fair Trade Commission or the Mayor of Special Metropolitan city, the Mayor of Metropolitan City, the Governor of Province, the Governor of special self-governing province(hereinafter referred to as “Mayer · Governor of Province”)
② Fair Trade Commission or the Mayer · Governor of Province, received the Registration Application Form in the paragraph (1), shall issue the Certificate of Multi-level Marketing Business Registration of the Attachment Form No.8 under the Article 20(2) of the Enforcement Decree or Certificate of Support Door-To-Door Business Registration of the Attachment Form No.9
③ In Article 13(1) 6 of the Act, “A document prescribed by ordinance of the Prime Minister“ refers to documents written business day of the companies.
④ Support door-to-door distributor who registers support door-to-door Sales pursuant to Article 13(1)and Article 29(3) of the Act, and intends to subject to Article 13(1) at the same time, should submit the Confirmation Letter of final-consumer Volume of Attached Form No.12 to the Fair Trade Commission or the Mayer · Governor of Province. And evidentiary documents(those may include statement of tax adjustment and accounting audit report, etc.) for sales of support door-to-door Sales of preceding business year should be attached.
⑤ Fair Trade Commission or the Mayer · Governor of Province, received the application of registration under the paragraph(1), shall check each document of following subparagraph through joint use of administrative information in accordance with Section 36(1) of the "Electronic Government Act". Provided, where applicant does not agree with confirmation of subparagraph 2 and 3, he/she shall attach corresponding documents.(In case of subparagraph 3, it refers to its copy)
1. Certificate of Corporate Registration(For corporate only)
2. Certified Copy of Promotor’s Resident Registration (only for the case when applicant who applies before registration of incorporation)
3. Business License
Article 12(Report on Amendment) #
Multi-level marketing business provider or support door-to-door distributor who intends to report amendments pursuant to Article 13(3) and Article 29(3) of the Act and Article 20(3)of the Enforcement Decree, shall submit the Report on Registration Amendment of Multi-level Marketing Business, support Door-To-Door Business of the Attachment Form No.10 to Fair Trade Commission or the Mayer · Governor of Province. And evidentiary documents for that amendment and retail business registration certificate(Only if amendment needed) should be attached.
Article 13(Report on Suspension or Closure of Multi-Level Marketing Business Provider, etc) #
Multi-level marketing business provider or support door-to-door distributor who intend to suspend or close or restart the business pursuant to Article 13 (3) and Article 29 (3) of the Act and Article 20 (4) of the Enforcement Decree, shall submit the Report Form on Multi-level Marketing Business, Support Door-To-Door Sales(Temporary Closure, Closure, Reopen) of the Attached Form No.11 to Fair Trade Commission or the Mayer · Governor of Province. In case of closure of business, the original Certificate of Multi-level Marketing Business Registration or the Certificate of Support Door-To-Door Business Registration shall be attached.
Article 14(Report by Electronic Document) #
Report by electronic document of multi-level marketing business provider and support door-to-door distributor pursuant to Article 13(2) · (3) of the Act (Except for report on business closure) or Article 29(3) of the Act and Article 5(5) of the Enforcement Decree, is applied to the Article 8. In this case, “the Mayer of Special Autonomous City, the Governor of Special Self-governing Province, the Mayor of a city, head of a Gun, head of a Gu” are deemed as“ the Mayer · Governor of Province”
Article 15(Application Registration of Multi-Level Salesman) #
① Pursuant to Article 15(1) of the Act, Multi-level salesman shall submit an application registration of multi-level salesman including name, birthday, address and contact number(Including email address if any) and name of multi-level marketing business provider, sealed with the signature to the multi-level marketing business provider.
② Application registration of multi-level salesman in paragraph (1) can be submitted by means of electronic document. In this case, digital signature can be used through official digital signature pursuant to the Article 2(3) of “Digital Signature Act” or the authentication system using encrypted digital signature technology which is equivalent to the official one.
③ If failed to meet requirements of digital signature pursuant to paragraph (2), it could be supplemented by either direct submission or post within 2 months, and then the application registration is deemed to have been applied on the same date of application registration of multi-level salesman by electronic documents is submitted.
Article 16(Multi-Level Salesman Registration) #
① Multi-level marketing business provider, pursuant to Article 15(3) of the Act, shall issue the certificate of multi-level salesman registration indicating multi-level salesman’s name, birthday, address, registration date, registration number and multi-level marketing business provider’s name(including seal)
Article 17(Multi-Level Salesman Register) #
① Multi-level salesman register, pursuant to Article 15(4) of the Act, shall include each salesman’s registration date, registration number, name, birthday, address (Including email address if any) and contact number.
② If multi-level marketing business provider operates a web site, consumers shall be allowed to access that to confirm multi-level salesman is registered to multi-level marketing business provider.
Article 18(Multi-Level Salesman Diary) #
“Matters prescribed by ordinance of the Prime Minister“ in the Article 15 (5) 5 the of Act, means following each subparagraph.
1. Explanation of data Fair Trade Commission notifies and prescribes.
2. The phrase of ‘multi-level salesman diary’, date of production and multi-level marketing business provider’s name shall be shown on the dairy(need to be marked on the cover).
Article 19(Matters Included When Providing Support Allowance Information) #
Pursuant to Article 21(2) and the Article 29(3) of the Act, multi-level marketing business provider or support door-to-door distributor or those who intend to be them shall be provided support allowance payment status with a graph of average support allowance and support allowance dispersion in written form.
Article 20(Notification of Address Amendment, etc.) #
Fair Trade Commission or the Mayer · Governor of Province, pursuant to Article 27 and Article 29(3) of the Act, shall notify the address amendment, etc. of multi-level marketing business provider or support door-to-door distributor through the official gazette or official report or daily newspaper (“Newspaper, etc. Promotion Act”, it refers to national newspaper among general daily newspapers) published by a local government or post it to the bulletin board. However, in case of cancellation of multi-level marketing business provider or support door-to-door distributor’s registration, it shall be appeared in the official gazette or daily newspaper.
Article 21(End Consumer Sales Ratio Confirmation) #
“Monthly data prescribed by ordinance of the Prime Minister” in the subparagraph(2) 4 of attached Table No. 1 of the Enforcement Decree, refers to the Confirmation Letter of Final-consumer Sales volume of the of the Attached Form No.12
Article 22(Calculation Standard of Delay Period In Case of Delaying Recurring Transactions Refund) #
“Delay period prescribed by ordinance of the Prime Minister” in the late part of Article 32(3) of the Act means more than 3 business days of delay
Article 23(Insurance of Compensation to Consumers' Damage) #
① Insurance benefit of Insurance Contract of compensation to consumers' damage etc., pursuant to the Article 37(1) of the Act, shall be directly received by the consumer, who purchased goods sold by marketing business provider or support door-to-door distributor signed the insurance contract.
② Multi-level marketing business provider or support door-to-door distributor who signed consumer damage compensation insurance contract shall make a purchaser of goods, etc. understand easily to know the fact that he/she signed the insurance contract, etc. and its description
Article 24(Exceptions of Refusal to Receive Calls Confirmation) #
Telemarketing sales provider, pursuant to proviso of the Article 42(2) of the Act, shall be allowed to provide telemarketing sales without asking their refusal of the sales through the telemarketing register system, only when notified the consumers of the target, method and cancellation of telemarketing acceptance and received their agreement in advanced.
Article 25(Registration of Trade Association) #
Trade association seeking to register pursuant to the Article 54(1) of the Act shall submit the Registration Application of Trade association of the Attachment Form No.13 to the Fair Trade Commission
Article 26(Review of Regulation) #
Fair Trade Commission shall review validity of reports on amendment and suspension/closure of door-to-door distributor under the Article 6 and 7, triennially from Jan 1, 2014. (refers to the day by Jan 1, of every 3 year) and shall take measure of enhancement, etc.
[Newly enacted 2013.12.31.]