Distinguishing from illegal pyramid scheme

01Legal MLM or door-to-door sales under sponsorship businesses (where less than 70/100 of goods or services supplied by a door-to-door sales business entity under sponsorship to a door-to-door distributor under sponsorship is sold to end consumers) should join KOSSA in accordance with Article 37 of the DDSA.
02Legal MLM businesses distribute the document titled ‘Notice of the Mutual Aid Number’ issued by KOSSA whenever they sell goods.

03Legal MLM businesses shall not do illegal activities as shown below:
- Trade in which the sales price of individual product exceeds 1.6 million KRW (including VAT)
- Trade of non-goods, such as trade of land
- Illegal fund-raising business not accompanying trade of goods (such as investment)
- Activity of spurious trade of goods to pretend normal trading, etc
- Persuading joining by promising illegal commission payment of a huge amount of money
04Legal MLM businesses do NOT commit fraud involving job offer, coercive and illegal camp training or purchase of goods against people including undergraduates or the unemployed.