China -  Chinese law firm

Direct Sales

Our Direct Sales team adeptly navigates China's intricate direct selling industry, offering expert guidance to help clients establish a robust presence in this dynamic market. Proficient in the evolving regulatory landscape, we assist businesses in overcoming historical prohibitions on multi-level marketing (MLM) through innovative market entry strategies.


A pivotal shift occurred on August 23, 2005, when the State Council introduced rules addressing direct sales, marking a new era for the industry. Despite ongoing challenges, direct selling is now codified, subject to stringent conditions designed to mitigate risks.


Our comprehensive overview of Direct Selling in China explores eligible product categories outlined in the Direct Sales Regulations. Chinese and foreign companies ("FIEs") seeking to engage in direct sales activities must secure a direct selling license from the Ministry of Commerce ("MOFCOM"). To date, only 91 companies, both domestic and foreign, have successfully obtained this license, highlighting its difficulty and high qualifying standards.


Our team members have been proactive in dealing with Chinese regulatory authorities regarding direct sale regulations since before the establishment of the laws, policies, and regulations. With years of extensive experience addressing diverse corporate and commercial needs for both domestic and foreign clients in China, our direct sales professionals offer comprehensive legal and business advice. From assisting new startups to supporting established companies expanding their direct sale systems and ensuring compliance with direct sale operation models, we've served as local counsel for leading worldwide direct sale companies, including Avon, Amway, and Melaleuca.


To learn more about how Lehman, Lee & Xu can assist with your legal needs in direct sales, please contact us at:

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