The Multi-Level Sales Act (the “Act”) was promulgated and became effective on January 29, 2014. After the promulgation, the relevant provisions relating to regulation on multi-level sales in the “Fair Trade Act” and “Supervisory Regulations Governing Multi-Level Sales” ceased to apply and was superseded by the Act. The key points of the Act include multi-level sales enterprises’ (the “Enterprises”) duty of informed consent and disclosure of financial information; participants’ withdrawal and refund mechanism; the circumstances constituting participants’ default under the contract and its handling; prohibition of multi-level sales that have changed in nature or are inappropriate, and the relevant criminal and administrative sanctions. The Act also provides that the Fair Trade Commission should designate Enterprises to provide donations for establishing a protection institute. The institute will be responsible for protection of rights and dispute resolution, and may collect fund and annual fee from Enterprises and participants.