Businesses are not allowed to use pictures of doctors or words of thanks from patients to advertise multi-level marketing.

This is the content stipulated by the Government in Decree No. 18/2023/ND-CP amending and supplementing a number of articles of Decree No. 40/2018/ND-CP dated March 12, 2018 on management of multi-level business activities, which was recently issued by the Government on April 28, 2023.

In particular, Decree No. 18/2023/ND-CP amends and supplements Clause 2, Article 3 of Decree No. 40/2018/ND-CP regulating multi-level marketing enterprises. According to the new regulations, a multi-level marketing enterprise is an enterprise that has been granted a certificate of registration for multi-level marketing activities by a competent authority to organize business activities in the form of multi-level marketing according to the provisions of the Decree.

Doctor Truong Huu Khanh, Head of the Department of Infectious Diseases and Neurology at Children's Hospital 1, had his photo used by the Facebook page 'VinMac Height Increase' to advertise and sell products.

Notably, Decree No. 18/2023/ND-CP supplements Clauses 13 and 14, Article 40 of Decree No. 40/2018/ND-CP on the responsibilities of multi-level marketing enterprises. Accordingly, multi-level marketing enterprises must ensure that at least 20% of multi-level marketing revenue in a fiscal year is revenue from customers who are not multi-level marketing participants of that enterprise.

Multi-level marketing enterprises shall not provide information about food by using images, equipment, costumes, names, correspondence of medical units, facilities, doctors, pharmacists, medical staff, thank-you letters, thanks from patients, articles of doctors, pharmacists, medical staff; shall not provide information about food with content posted, quoted, quoted or expressing opinions of patients describing foods that have the effect of treating diseases.

Decree No. 18/2023/ND-CP also amends and supplements a number of conditions for organizations registering for multi-level sales activities as prescribed in Clause 1, Article 7 of Decree No. 40/2018/ND-CP.

Specifically, members of a partnership, owners of a private enterprise or a one-member limited liability company, members of a limited liability company with two or more members, shareholders of a joint stock company, and legal representatives of an enterprise do not include organizations or individuals who have held one of the above positions at a multi-level marketing enterprise whose multi-level marketing registration certificate has been revoked according to the provisions of Decree No. 42/2014/ND-CP dated May 14, 2014 of the Government on the management of multi-level marketing activities and this Decree during the time the enterprise was conducting multi-level marketing activities.

At the same time, Decree No. 18/2023/ND-CP adds the following condition: In case the organization registering for multi-level sales activities is an enterprise with a foreign investor or a foreign-invested economic organization as the owner or member or shareholder, all foreign investors and foreign-invested economic organizations must have a minimum of 3 consecutive years of actual multi-level sales activities in a country or territory in the world.

Decree No. 18/2023/ND-CP also adds the provision "Enterprises do not have to carry out procedures to terminate multi-level sales activities locally in case of terminating multi-level sales activities nationwide".

Decree No. 18/2023/ND-CP takes effect from June 20, 2023.

Source: https://www.congluan.vn/doanh-nghiep-khong-duoc-su-dung-hinh-bac-si-loi-cam-on-cua-nguoi-benh-de-quang-cao-ban-hang-da-cap-post245724.html