①The term "multilevel marketing undertaking" as used in this Chapter and Article 58-21, paragraphs (1) and (3) and Article 67, paragraph (1) means the business of selling (including arranging for another person to sell) articles (including rights to use facilities or to be provided with services; the same applies hereinafter in this Chapter and Chapter 5) or of providing (including arranging for another person to provide) services in exchange for payment, where a counterparty is induced to resell the articles that have been sold to them (hereinafter referred to as "goods" in this Chapter and Article 58-21, paragraph (1), item (i), (a)) ("resell" means purchasing the goods and then selling them; the same applies hereinafter), wherein a counterparty is induced to sell goods on consignment (meaning being consigned the goods and then selling them; the same applies hereinafter), where a counterparty is induced to arrange the sale of goods, where a counterparty is induced to provide the same kind of services (meaning providing the same kind of services that have been provided to them; the same applies hereinafter), or where a counterparty is induced to arrange for the services to be provided, using the possible receipt of a specified profit (meaning all or part of the transaction fees provided by another person who resells, sells on consignment, or arranges the sale of goods, all or part of the transaction fees provided by another person who provides the same kind of services or arranges for those services to be provided, and any other profits that satisfy the requirements specified by order of the competent ministry; hereinafter the same applies in this Chapter and Article 58-21, paragraph (1), item (iv)), and where transactions that involve a specified burden (meaning the purchase of goods, payment of the consideration for services, or provision of a transaction fee; hereinafter the same applies in this Chapter and Article 58-21, paragraph (1), item (iv)) are carried out with the counterparty to sell or arrange the sale of goods, or where transactions that involve a specified burden are carried out with the counterparty to provide or arrange the provision of the same type of services (the transactions include any change in the terms of a transaction; hereinafter referred to as "multilevel marketing transactions").

②The term "orchestrator" as used in this Chapter and Article 58-21, Article 58-26, paragraph (1), Article 66, paragraph (1), and Article 67, paragraph (1) means the person materially orchestrating a set of related multilevel marketing undertakings, which includes the orchestrator attaching its own trademark to the multilevel marketing goods or causing its own trade name or other specified indication to be used for providing services in connection with multilevel marketing undertakings, stipulating the terms and conditions of multilevel marketing transactions, and continuously guiding the operations of persons carrying on multilevel marketing undertakings.

③The term "transaction fee" as used in this Chapter means a transaction fee, a membership fee, a security deposit, or other money or goods provided at the time a transaction is carried out or upon changing the terms of a transaction, irrespective of the name given to it.

When an orchestrator, a solicitor (meaning a person who is made to solicit other persons by the orchestrator in connection with multilevel marketing transactions connected to the set of related multilevel marketing undertakings orchestrated by that orchestrator; the same applies hereinafter), or a general multilevel marketing distributor (meaning a person, other than an orchestrator or a solicitor, who carries on a multilevel marketing undertaking; the same applies hereinafter) seeks to carry out a multilevel marketing transaction connected to the set of related multilevel marketing undertakings orchestrated by that orchestrator, the orchestrator, the solicitor, or the general multilevel marketing distributor must clearly indicate to the other party, prior to solicitation, the name of the orchestrator, the solicitor, or the general multilevel marketing distributor (a solicitor or a general multilevel marketing distributor must also indicate the name of the orchestrator), the fact that the purpose is to solicit the person to enter into a contract involving transactions that give rise to a specified burden, and the type of goods or services connected with the solicitation.

①An orchestrator or solicitor must not intentionally fail to disclose facts about or to misrepresent the following information either in soliciting a person to enter into a contract involving multilevel marketing transactions that are connected to the set of related multilevel marketing undertakings orchestrated by the orchestrator (limited to a contract with an individual who, without using a store or other similar facility (hereinafter referred to as a "store or similar facility"), will sell or arrange the sale of goods associated with that multilevel marketing undertaking or will provide or arrange for providing services associated with that multilevel marketing undertaking; hereinafter the same applies in this Article and Article 38, paragraph (3), item (ii)), or in order to prevent the cancellation of a contract involving multilevel marketing transactions that are connected to the multilevel marketing undertaking:

②A general multilevel marketing distributor must not misrepresent the matters listed in the items of the preceding paragraph, either in soliciting a person to enter into a contract involving multilevel marketing transactions that are connected to a set of related multilevel marketing undertakings orchestrated by an orchestrator, or in order to prevent the cancellation of a contract for multilevel marketing transactions connected with that multilevel marketing undertaking.

③An orchestrator, solicitor, or general multilevel marketing distributor must not use intimidation to overwhelm a person in order to have the person enter into a contract involving multilevel marketing transactions that are connected to a set of related multilevel marketing undertakings orchestrated by that orchestrator or in order to prevent the person from canceling a contract involving multilevel marketing transactions that are connected to the multilevel marketing undertaking.

④An orchestrator, solicitor, or general multilevel marketing distributor must not solicit a person whom the orchestrator, the solicitor, or the general multilevel marketing distributor has stopped and taken along with them or whom the orchestrator, the solicitor, or the general multilevel marketing distributor has induced away from a place that is not a business office, agency office, or any other place specified by order of the competent ministry by any other means specified by Cabinet Order, to enter into a contract involving transactions that give rise to a specified burden other than in a place into and out of which the general public comes and goes, without first having informed the person that the purpose for doing so is to solicit the person to enter into the contract.

On finding that it is necessary to do so in order to determine whether an orchestrator, a solicitor, or a general multilevel marketing distributor has misrepresented the information prescribed in Article 34, paragraph (1), item (i) or (iv), the competent minister may ask the orchestrator, the solicitor, or the general multilevel marketing distributor to submit materials showing reasonable grounds to support the information conveyed to the other party, within a specified period. In this case, if the orchestrator, the solicitor, or the general multilevel marketing distributor fails to submit those materials, the orchestrator, the solicitor, or the general multilevel marketing distributor is deemed to have misrepresented the information prescribed in Article 34, paragraph (1), item (i) or (iv), with regard to the application of the provisions of Article 38, paragraphs (1) through (3) and Article 39, paragraph (1).

When an orchestrator, a solicitor, or a general multilevel marketing distributor advertises the multilevel marketing transactions that are connected with the set of related multilevel marketing undertakings orchestrated by the orchestrator, it must indicate the following information about the multilevel marketing undertaking in the advertisement, pursuant to the provisions of order of the competent ministry:

When an orchestrator, a solicitor, or a general multilevel marketing distributor advertises multilevel marketing transactions that are connected with the set of related multilevel marketing undertakings orchestrated by the orchestrator, it must not make a representation about the performance or quality of the goods associated with its multilevel marketing undertaking (excluding rights to use a facility or to be provided with services), the details of the rights to use a facility or to be provided with services, or the details of services associated with its multilevel marketing undertaking, nor about the specified burden involved in those multilevel marketing transactions, the specified profit involved in that multilevel marketing undertaking, or any other information specified by order of the competent ministry, that differs significantly from the truth or misleads people into believing that it is significantly better or more advantageous than it is in reality.

On finding that it is necessary to do so in order to determine whether an orchestrator's, solicitor's, or general multilevel marketing distributor's representation falls under the category of representations provided in the preceding Article, the competent minister may ask the orchestrator, the solicitor, or the general multilevel marketing distributor that made that representation to submit materials showing reasonable grounds to support it within a specified period. In the case, with regard to the application of the provisions of Article 38, paragraphs (1) through (3) and Article 39, paragraph (1) if the orchestrator, the solicitor, or the general multilevel marketing distributor fails to submit those materials, the representation is deemed to fall under the category of representations provided for in the preceding Article.