Legislative Notice of the Amendment to the Enforcement Decree of the Door-to-Door Sales Act
The price limit for individual goods in multi-level and sponsor direct sales will be raised to 2 million won. The notification obligation related to the calculation and payment criteria of sponsor commissions will also be relaxed.
On the 23rd, the Korea Fair Trade Commission announced a partial amendment to the Enforcement Decree of the Door-to-Door Sales Act containing these details for public comment.
The amendment includes raising the price limit for individual goods in multi-level and sponsor direct sales from 1.6 million won to 2 million won. This increase reflects recent social and economic changes such as high inflation, raising the limit that has been maintained since the 2012 amendment.
The scope of exceptions to the notification obligation regarding changes in the calculation and payment criteria of sponsor commissions for multi-level sellers and sponsor direct sellers will also be expanded.
The current enforcement decree requires sellers to be notified three months in advance, except in cases where "all salespersons benefit or all salespersons have agreed."
The amendment allows businesses to be more flexible in response to market changes by exempting the notification obligation if changes to sponsor commissions are temporary.
However, to prevent harm to salespersons caused by abuse of temporary promotional events, the duration and frequency of changes in the calculation and payment criteria of sponsor commissions will be specified later by a Prime Ministerial Decree.
The amendment also includes provisions to revise the criteria for calculating the proportion of final consumer sales in sponsor direct sales.
The Fair Trade Commission plans to complete the legal amendment in the second half of the year after collecting opinions from stakeholders and related ministries during the public comment period.
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