Update On MLM Regulations In China

"After an eight-year ban, the Beijing government's Commerce Ministry has okayed the resumption of direct sales. Such sales were banned in 1998 on ground that it was hard for consumers to tell the difference between legitimate sales networks and fraudulent pyramid schemes, which were common then.

Now that the government has issued rules to regulate direct sales, Avon and other companies such as cleaning products maker Amway are applying for licenses. The companies had been selling their products through retail outlets."