Law Articles
2024-07-17
MLM
MLM Legal Updates: Electronic Contract Adopted in Taiwan for MLM (Direct Selling) Industry.
【Charlotte Wu, Partner, Zhong Yin Law Firm】
charlotte.wu@zhongyinlawyer.com.tw
charlotte.wu@zhongyinlawyer.com.tw
On July 15, 2024, The Legislative Yuan passed the third reading of the "Amendment to Article 13 of the Multi-Level Marketing Supervision Act," stipulating that the participation contracts between multi-level marketing (MLM) businesses and distributors "may be made in electronic form."
The current "Article 13 of the Multi-Level Marketing Supervision Act" stipulates that when MLM businesses allow distributors to participate in their MLM plans or organizations, they must sign written participation contracts with the distributors and deliver the original contracts. The written documents mentioned in the preceding paragraph may not be made in electronic form.
The legislators argue that with rapid technological advancements and the global trend of promoting environmental protection and carbon reduction, the legal requirement for written contracts no longer meets social needs and international environmental trends. Additionally, Taiwan has already implemented the Electronic Signatures Act, with relevant government agencies and financial institutions adopting electronic documents in place of written ones. Therefore, the amendment was proposed.
The amendment passed in the third reading stipulates that when MLM businesses allow distributors to participate in their MLM plans or organizations, they must sign written participation contracts with the distributors and deliver the original contracts. "The written documents mentioned in the preceding paragraph may be made in electronic form." This amendment means that electronic documents will now be legally recognized as equivalent to written documents.
Relevant impacts might include, but not limited to, Electronic Signatures Act, Personal Data Proetection Act, etc.
If you are interested in the above information, or have any questions in this regard, please do not hesitate to contact us.
The current "Article 13 of the Multi-Level Marketing Supervision Act" stipulates that when MLM businesses allow distributors to participate in their MLM plans or organizations, they must sign written participation contracts with the distributors and deliver the original contracts. The written documents mentioned in the preceding paragraph may not be made in electronic form.
The legislators argue that with rapid technological advancements and the global trend of promoting environmental protection and carbon reduction, the legal requirement for written contracts no longer meets social needs and international environmental trends. Additionally, Taiwan has already implemented the Electronic Signatures Act, with relevant government agencies and financial institutions adopting electronic documents in place of written ones. Therefore, the amendment was proposed.
The amendment passed in the third reading stipulates that when MLM businesses allow distributors to participate in their MLM plans or organizations, they must sign written participation contracts with the distributors and deliver the original contracts. "The written documents mentioned in the preceding paragraph may be made in electronic form." This amendment means that electronic documents will now be legally recognized as equivalent to written documents.
Relevant impacts might include, but not limited to, Electronic Signatures Act, Personal Data Proetection Act, etc.
If you are interested in the above information, or have any questions in this regard, please do not hesitate to contact us.
