« Revisions to the Chinese Company Law | Main | Are Some Chinese Going Nuts? »
November 28, 2005
Event: Door to Door Selling, The Legal Aspects
[Editor's note: Door to door selling, which some consider to have been made illegal several years ago by regulation, has nevertheless flourished in China. Vacuum cleaners, water purifying systems, pots and pans, insurance and credit cards are but a few examples. Managers in this industry have told me that door to door selling is considered legal by local authorities, when there is an in-home demonstration. The growth of the industry since the supposed ban lends credence to this understanding.
Hence, at least from the rapid growth of door to door sales, the title of this event is not entirely accurate: doorbells have been ringing non-stop. Draft revisions of the law that limited multi-level marketing （串销 as opposed to 直销） have been in the works for several years, since fraud and the collapse of certain firms led to financial ruin for many who had invested their savings in building their part of the business. It was rumored that the new law would be promulgated by September, 2005, but the draft had not been finalized and its status has been uncertain. Hence, this event should prove extremely interesting.]
The China Committee of The American Bar Association, presents:
Direct Selling in China: Will Doorbells Soon Be Ringing?
Time: Wednesday, Nov. 30, 2005， 7:30 – 9:00 am (Shanghai Time)
(This is the same time as: Tuesday, Nov. 29, 2005, 6.30 - 8.00 pm (EST)
Location: Squire, Sanders & Dempsey LLP， Kerry Centre, Suite 1207，1515 Nanjing Road West， Shanghai，Phone: 21-6103-6300
“Since mid-2004, observers have been closely watching as China has adopted regulations aimed at implementing its commitments to open the PRC distribution sector to foreign sectors. In Year 2 of this process, China’s State Council, the highest body in the administrative branch of the government, has issued the “Regulations for the Administration of Direct Selling” (the “Direct Selling Regulations”), which will become effective as of the 1st of December of 2005. The Direct Selling Regulations are intended to address the confusion that has existed since the late 1990’s with respect to the use of direct marketing methods of distribution, which involves sales separate from a fixed location.“
Speakers:
Herbert Ho has 20 years of business experience in China. He received his Ph.D. from U. of Chicago, and J.D. from the John Marshall Law School. He is the author of the book "The Development of Direct Selling Regulation in China, 1994-2004," published by the US China-Business Council
Tony Chuang is a China Committee member and has been working in China for more than four years. He received his J.D. from Rutgers Law School. He served as the major contributor to the direct selling section of “the White Paper 2005: American Business in China,” published by the American Chamber of Commerce in the PRC.
Moderator:
Amy Sommers, Squire Sanders & Dempsey LLP, Shanghai, China
RSVP to Charlotte He (yhe@ssd.com) or PH: 21-6103-6324
Comments
Post a comment
Thanks for signing in, . Now you can comment. (sign out)
(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)
