Title Page
ABSTRACT
LIST OF ABBREVIATIONS
Contents
CHAPTER 1: FUNDAMENTAL CONCEPTS OF MULTI-LEVEL MARKETING AND PYRAMID SCHEMES AND COMPARISON BETWEEN THEM 12
1.1. General understanding about direct selling 12
1.1.1. Definition of direct selling 12
1.1.2. Types of direct selling 14
1.2. Fundamental understanding of Multi-level marketing 15
1.2.1. Brief history and development of Multi-level marketing 15
1.2.2. General understanding and definition of a multi-level marketing plan 17
1.2.3. Legitimacy of multi-level marketing 21
CHAPTER 2: MULTI-LEVEL MARKETING VERSUS PYRAMID SCHEMES - A MULTI-LEVEL MARKETING IN DISGUISE 23
2.1. General understanding of Pyramid schemes 23
2.1.1. Concept of Pyramid schemes 23
2.1.2. Different forms of Pyramid schemes 26
2.2. Legal status of Pyramid schemes among countries 30
2.2.1. The United States 30
2.2.2. Singapore 39
2.2.3. Hong Kong 42
2.2.4. Canada 45
2.3. The impact of Pyramid schemes 46
CHAPTER 3: CASE STUDY 49
3.1. The 1975 FTC v. Koscot Interplanetary case 49
3.1.1. Background 49
3.1.2. The case 51
3.2. The 1979 FTC v. Amway case 56
3.2.1. Background 56
3.2.2. The case 57
3.3. Lien Ket Viet case (The Vietnam Commercial Production Joint Stock Company case) 62
3.3.1. Background 62
3.3.2. The case 63
3.4. Distinguish a legitimate multi-level marketing program from a Pyramid scheme 75
CHAPTER 4: PROPOSAL FOR VIETNAM TO PROTECT DISTRIBUTORS AND CUSTOMERS 78
4.1. Situation of Multi-level marketing in Vietnam 78
4.1.1. Situation of distributors and customers in Vietnam 78
4.1.2. Status of legal base for Multi-level marketing in Vietnam 81
4.2. Legal proposal for Vietnam to protect distributors and customers 95
4.2.1. Amway Safeguards Rules 95
4.2.2. Amcham Vietnam's Code of Conduct 97
4.2.3. The loopholes of Decree 71/2014 / ND-CP 97
4.2.4. Modify the Decree no. 42/2014/ND-CP on Management of Multi-Level Marketing Activities of Vietnam 98
4.2.5. More consumers protection provisions 104
CHAPTER 5: CONCLUSION 109
REFERENCES 112