It is essential that you know the laws that govern Marketing MLM or Network Marketing in Spain. It is very important that you have the security that are regulated and are permitted by the Government of your country. In Spain is very well regulated and reflected in the following laws: law 7/1996 of 15 January, management of the retail trade. (Amended by Act 29/2009 of 30 December for the improvement of the protection of consumers) Article 22. Sales MLM.
1 Multi-level sale constitutes a particular form of trade in which a manufacturer or a wholesaler sells its goods or services through a network of dealers and/or agents distributors independent but coordinated within a commercial network and whose economic benefits are obtained by using a single margin over the selling price to the publicdistributed through the perception of varying percentages on the total turnover generated by the set of sellers integrated in the commercial network, and in proportion to the volume of business that each component has been created. For the purposes of this article, traders and agents independent distributors will be considered in any case businessmen for the purposes specified in the consolidated text of the General Law for the defence of consumers and users and other complementary laws. 2 It is prohibited to organize the marketing of goods and services when: a. constitutes an unfair act with consumers as provided in article 26 of the law 3/1991 of January 10, of unfair competition. Article 26. Covert business practices. Unfair is considered misleading to include as information in the media, communications to promote a good or service, paying the entrepreneur or professional for this promotion, unless it is clearly specified in the content or by images and sounds clearly identifiable to the consumer or user that it is an advertising content.
b. do not adequately guarantee that distributors have the timely hiring labour or comply with requirements that are legally required for the development of an comercial.c activity. There is the obligation to make a minimum purchase of products distributed by new sellers, without Covenant of repurchase under the same conditions. 4. In any case the manufacturer or wholesale company holder of the network may condition access to the same to the payment of a fee or entry fee that is not equivalent to products and promotional, informational or educational material delivered at a price similar to other existing market counterparts and which may not exceed the amount to be determined by regulation. In the event that there is a Pact of repurchase, the products will have to admit to return provided that their State does not clearly prevent subsequent marketing.Article 23. Prohibition of pyramid sales.Pyramid sales practices are provided for in article 24 of the law 3/1991 of January 10, of unfair competition, being null void contractual terms and conditions contrary to provisions of this precept. Article 24. Pyramid selling practices.Unfair is considered misleading, in any circumstance, create, directing or promoting a pyramid sale plan in which the consumer or user do a consideration in exchange for the chance to receive compensation derived fundamentally the input of other consumers or users in the plan, and no sale or supply of goods or services.