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.

①Except in the following cases, an orchestrator, a solicitor, or a general multilevel marketing distributor must not advertise multilevel marketing transactions that are connected with the set of related multilevel marketing undertakings orchestrated by that orchestrator via email without the consent of the advertising target:

②An orchestrator, solicitor, or general multilevel marketing distributor that has obtained the consent prescribed in the preceding paragraph or that has received a request provided in item (i) of that paragraph must not send email advertising multilevel marketing transactions to an advertising target if the target of the email advertising multilevel marketing transactions indicates an unwillingness to receive email advertising multilevel marketing transactions; provided, however, that this does not apply if the orchestrator, the solicitor, or the general multilevel marketing distributor later receives a request from the advertising target or regains the consent of the advertising target to send email advertising multilevel marketing transactions.

③Except in the case stated in paragraph (1), item (ii), when sending email advertising multilevel marketing transactions, an orchestrator, a solicitor, or a general multilevel marketing distributor must prepare what is specified by order of the competent ministry as a record of having obtained the consent of the advertising target or having received a request from the advertising target to send email advertising multilevel marketing transactions, and must preserve the records pursuant to the provisions of order of the competent ministry.

④Except in the case stated in paragraph (1), item (ii), when sending email advertising multilevel marketing transactions, pursuant to the provisions of order of the competent ministry, in its email advertising multilevel marketing transactions, an orchestrator, a solicitor, or a general multilevel marketing distributor must indicate information that is specified by order of the competent ministry as the information that an advertising target needs to have in order to indicate an unwillingness to receive email advertising multilevel marketing transactions, in addition to the matters listed in the items of Article 35.

⑤If an orchestrator, a solicitor, or a general multilevel marketing distributor has comprehensively entrusted another person with all of the following business activities, the provisions of the preceding two paragraphs do not apply to any email advertising multilevel marketing transactions subject to that entrustment:

①Except in the following cases, a person comprehensively entrusted with all of the business activities listed in the items of paragraph (5) of the preceding Article by an orchestrator, a solicitor, or a general multilevel marketing distributor (a person so entrusted is hereinafter referred to as a "contractor sending email advertising multilevel marketing transactions" in this Chapter and Article 66, paragraph (6) and Article 67, paragraph (1), item (iv)) must not send email advertising multilevel marketing transactions for multilevel marketing transactions that are connected with the set of related multilevel marketing undertakings orchestrated by the orchestrator, that are carried out by the orchestrator, the solicitor, or the general multilevel marketing distributor that entrusted the contractor with those business activities (hereinafter referred to as the "party entrusting a contractor with email advertising its multilevel marketing transactions" in this Article), without the consent of the advertising target:

②The provisions of paragraphs (2) through (4) of the preceding Article apply mutatis mutandis to the email advertising the multilevel marketing transactions of a party entrusting a contractor with email advertising its multilevel marketing transactions by a contractor sending email advertising multilevel marketing transactions .In this case, the phrase "paragraph (1), item (ii)" in paragraphs (3) and (4) of the preceding Article is deemed to be replaced with "paragraph (1), item (ii) of the following Article".

①When a person carrying on a multilevel marketing undertaking (if a person other than a person carrying on a multilevel marketing undertaking will enter into a contract concerning the specified burden involved in multilevel marketing transactions that are connected with that multilevel marketing undertaking, the person entering into the contract; the same applies in paragraph (3)) seeks to enter into a contract concerning the specified burden involved in multilevel marketing transactions with a person seeking to bear that specified burden (limited to an individual who will sell or arrange the sale of goods associated with that multilevel marketing undertaking or will provide or arrange for providing services associated with its multilevel marketing undertaking, without using a store or similar facility), the person carrying on that multilevel marketing undertaking must deliver to that person a document containing an outline of its multilevel marketing undertaking pursuant to the provisions of order of the competent ministry before entering into that contract.

②If a person carrying on a multilevel marketing undertaking has entered into a contract involving multilevel marketing transactions that are connected with the person's multilevel marketing undertaking (hereinafter referred to as a "multilevel marketing contract" in this Chapter), and the counterparty to the multilevel marketing contract is an individual who sells or arranges the sale of goods associated with that multilevel marketing undertaking or provides or arranges for providing services associated with that multilevel marketing undertaking without using a store or similar facility, the person engaged in multilevel marketing must deliver to that person a document containing the details of that multilevel marketing contract with respect to the following information without delay, pursuant to the provisions of order of the competent ministry:

③In place of the delivery in writing under the provisions of the preceding two paragraphs, a person engaged in multilevel marketing may provide the information that should be described in the documents by an electronic or magnetic means, after gaining the consent of a person who seeks to execute the specified burden involved in the multilevel marketing transactions or a counterparty to the multilevel marketing contract, pursuant to Cabinet Order. In this case, the person engaged in the multilevel marketing is deemed to have delivered the documents.

④The provision of information that is to be described in documents under paragraph (2) as specified in the first sentence of the previous paragraph through electronic or magnetic means (excluding means specified by ordinance of the competent ministry) is deemed to have been made to the counterparty to the multilevel marketing contract when the information is recorded in a file stored on the computer used by the counterparty to the multilevel marketing contract.

①If an orchestrator has violated any of the provisions of Article 33-2, Article 34, paragraph (1), (3), or (4), Article 35, Article 36, Article 36-3 (excluding paragraph (5)), or Article 37, paragraph (1) or paragraph (2) or has engaged in any of the following conduct, or if a solicitor has violated any of the provisions of Article 33-2, Article 34, paragraph (1), (3), or (4), Article 35, Article 36, or Article 36-3 (excluding paragraph (5)) or has engaged in any of the conduct listed in items (ii) through (iv) of this paragraph, and the competent minister finds that the conduct is likely to prejudice the fairness of multilevel marketing transactions and the interests of the counterparty to them, the minister may instruct the orchestrator to take measures for correcting the violation or conduct, measures for protecting the interests of the counterparty to the multilevel marketing transactions, or any other necessary measures:

②If a solicitor has violated any of the provisions of Article 33-2, Article 34, paragraph (1), (3), or (4), Article 35, Article 36, Article 36-3 (excluding paragraph (5)), or Article 37, paragraph (1) or paragraph (2) or has engaged in any of the conduct listed in the items of the preceding paragraph, and the competent minister finds that the conduct is likely to prejudice the fairness of multilevel marketing transactions and the interests of the counterparty to them, the minister may instruct the solicitor to take measures for correcting the violation or conduct, measures for protecting the interests of the counterparty to multilevel marketing transactions, and any other necessary measures.

③If a general multilevel marketing distributor has violated any of the provisions of Article 33-2, Article 34, paragraphs (2) through (4), Article 35, Article 36, Article 36-3 (excluding paragraph (5)), or Article 37, paragraph (1) or paragraph (2) or has engaged in any of the conduct listed in the following items, and the competent minister finds that the conduct is likely to prejudice the fairness of multilevel marketing transactions and the interests of the counterparty to them, the minister may instruct the general multilevel marketing distributor to take measures for correcting the violation or conduct, measures for protecting the interests of the counterparty to multilevel marketing transactions, or any other necessary measures:

④If a contractor sending email advertising multilevel marketing transactions has violated any of the provisions of Article 36-4, paragraph (1) or Article 36-3, paragraphs (2) through (4) as applied mutatis mutandis pursuant to Article 36-4, paragraph (2), and the competent minister finds that the conduct is likely to prejudice the fairness of multilevel marketing transactions and the interests of the counterparty to them, the minister may instruct the contractor sending email advertising multilevel marketing transactions to take any necessary measures.

⑤Having given an instruction under the provisions of paragraphs (1) through (3), the competent minister must issue a public announcement to that effect.

⑥Having given an instruction under the provisions of paragraph (4), the competent minister must issue a public announcement to that effect.

①If an orchestrator has violated any of the provisions of Article 33-2, Article 34, paragraph (1), (3), or (4), Article 35, Article 36, Article 36-3 (excluding paragraph (5)), or Article 37, paragraph (1) or (2) or has engaged in any of the conduct listed in the items of Article 38, paragraph (1), or if a solicitor has violated any of the provisions of Article 33-2, Article 34, paragraph (1), (3), or (4), Article 35, Article 36, or Article 36-3 (excluding paragraph (5)) or has engaged in any of the conduct listed in Article 38, paragraph (1), items (ii) through (iv), and the competent minister finds that that conduct is likely to significantly prejudice the fairness of multilevel marketing transactions and the interests of the counterparty to them, or the orchestrator fails to follow the instructions under the provisions of Article 38, paragraph (1), the minister may order the orchestrator to stop soliciting or causing a solicitor to solicit persons in connection with the multilevel marketing transactions that are connected to the multilevel marketing undertaking, or may order the orchestrator to suspend the multilevel marketing transactions in whole or in part, during a specified period of no longer than two years. In this case, if the orchestrator is an individual, the minister may also prohibit the individual from becoming an officer in charge of the business activities of a corporation that engages in business activities related to multilevel marketing transactions which fall within the scope of the suspension for a period equal to the period of that suspension.

②If a solicitor has violated any of the provisions of Article 33-2, Article 34, paragraph (1), (3), or (4), Article 35, Article 36, Article 36-3 (excluding paragraph (5)), or Article 37, paragraph (1) or paragraph (2) or has engaged in any of the conduct listed in the items of Article 38, paragraph (1), and the competent minister finds that the conduct is likely to significantly prejudice the fairness of multilevel marketing transactions and the interests of the counterparty to them, or the solicitor fails to follow the instructions under the provisions of Article 38, paragraph (2), the minister may order the solicitor to stop soliciting persons in connection with the multilevel marketing transactions that are connected to the multilevel marketing undertaking, or may order the solicitor to suspend multilevel marketing transactions in whole or in part, during a specified period of no longer than two years. In this case, if the solicitor is an individual, the competent minister may also prohibit the individual from becoming an officer in charge of the business activities of a corporation that engages in business activities related to multilevel marketing transactions which fall within the scope of the suspension for a period equal to the period of that suspension.

③If a general multilevel marketing distributor has violated any of the provisions of Article 33-2, Article 34, paragraphs (2) through (4), Article 35, Article 36, Article 36-3 (excluding paragraph (5)), or Article 37, paragraph (1) or paragraph (2) or has engaged in any of the conduct listed in the items of paragraph (3) of the preceding Article, and the competent minister finds that the conduct is likely to significantly prejudice the fairness of multilevel marketing transactions and the interests of the counterparty to them, or the general multilevel marketing distributor fails to follow the instructions under the provisions of that paragraph, the minister may order the general multilevel marketing distributor to stop soliciting persons in connection with the multilevel marketing transactions that are connected to the multilevel marketing undertaking, or may order the general multilevel marketing distributor to suspend multilevel marketing transactions in whole or in part, during a specified period of no longer than two years. In this case, if the general multilevel marketing distributor is an individual, the minister may also prohibit the individual from becoming an officer in charge of the business activities of a corporation that engages in business activities related to multilevel marketing transactions which fall within the scope of the suspension for a period equal to the period of that suspension.

④When the competent minister orders suspension of a multilevel marketing transaction pursuant to the provisions of the first sentence of paragraph (1), the first sentence of paragraph (2), and the first sentence of the preceding paragraph, and when the orchestrator, solicitor, or general multilevel marketing distributor is an individual and a specified associated corporation of them (meaning a juridical person whose business management is substantially controlled by an orchestrator, solicitor, or general multilevel marketing distributor, or an officer or employee of them (including a person who was an officer or employee within one year before the date of the order; the same applies in paragraph (4) of the next Article) and other corporations specified by Cabinet Order; the same applies in this paragraph and paragraph (4), item (i) of the Article) is found to conduct business activities equal to the business activities related to the multilevel marketing transaction on the scope subject to the suspension, the minister may order the orchestrator, solicitor, or general multilevel marketing distributor to suspend the business activities conducted by the specified associated corporation for the period equal to the period of the suspension.

⑤If a contractor sending email advertising multilevel marketing transactions has violated any of the provisions of Article 36-4, paragraph (1) or Article 36-3, paragraphs (2) through (4) as applied mutatis mutandis pursuant to Article 36-4, paragraph (2), and the competent minister finds that the conduct is likely to significantly prejudice the fairness of multilevel marketing transactions and the interests of the counterparty to them, or the contractor sending email advertising multilevel marketing transactions fails to follow the instructions under the provisions of paragraph (4) of the preceding Article, the minister may order the contractor sending email advertising multilevel marketing transactions to suspend its business activities that are connected with email advertising multilevel marketing transactions in whole or in part, during a specified period of no longer than one year.

⑥Having issued an order under the provisions of paragraphs (1) through (4), the competent minister must issue a public announcement to that effect.

⑦Having issued an order under the provisions of paragraph (5), the competent minister must issue a public announcement to that effect.

①If the competent minister orders an orchestrator to suspend its multilevel marketing transactions pursuant to the first sentence of paragraph (1) of the preceding Article, and a person that the relevant items among the following items prescribe for the category of the case stated in that item is a person specified by order of the competent ministry as a person whose multilevel marketing transactions should be restricted so as to ensure the effectiveness of the order in consideration of the facts constituting the grounds for the order and the extent of the responsibility that the person had for those facts, the minister may prohibit the person from commencing new business activities related to multilevel marketing transactions that fall within the scope of the suspension (including becoming an officer in charge of the relevant business activities of a corporation that engages in the business activities) for a period equal to the period of that suspension:

②If the competent minister orders a solicitor to suspend its multilevel marketing transactions pursuant to the first sentence of paragraph (2) of the preceding Article, and a person that the relevant items among the following items prescribe for the category of the case stated in that item is a person specified by order of the competent ministry as one whose multilevel marketing transactions should be restricted so as to ensure the effectiveness of the order in consideration of the facts constituting the grounds for the order and the extent of the responsibility that the person had for those facts, the minister may prohibit the person from commencing new business activities related to multilevel marketing transactions that fall within the scope of the suspension (including becoming an officer in charge of the relevant business activities of a corporation that engages in the business activities) for a period equal to the period of that suspension:

③If the competent minister orders a general multilevel marketing distributor to suspend its multilevel marketing transactions pursuant to the first sentence of paragraph (3) of the preceding Article, and a person that the relevant items among the following items prescribe for the category of the case stated in that item is a person specified by order of the competent ministry as one whose multilevel marketing transactions should be restricted so as to ensure the effectiveness of the order in consideration of the facts constituting the grounds for the order and the extent of the responsibility that the person had for those facts, the minister may prohibit the person from commencing new business activities related to multilevel marketing transactions that fall within the scope of the suspension (including becoming an officer in charge of the relevant business activities of a corporation that engages in the business activities) for a period equal to the period of that suspension:

④When the competent minister prohibits business activities of an officer or employee pursuant to the provision of the preceding three paragraphs and the officer or employee falls under any of the following items, the minister may order the officer or employee to suspend the same business activities conducted by it and provided for in the relevant items for a period equal to the period of the prohibition.

⑤Having issued an order under the provisions of the preceding paragraphs, the competent minister must issue a public announcement to that effect.

①When a person conducting a multilevel marketing undertaking has entered into a multilevel marketing contract in connection with the multilevel marketing undertaking, the counterparty to the multilevel marketing contract (limited to an individual who sells or arranges the sale of goods associated with that multilevel marketing or provides or arranges for providing services associated with that multilevel marketing undertaking, without using a store or similar facility; hereinafter referred to as a "multilevel marketing affiliate" in this Chapter) may cancel the multilevel marketing contract in writing or through electronic or magnetic records, except when 20 days have passed after the date on which the multilevel marketing affiliate received the document referred to in Article 37, paragraph (2) (or except when 20 days have passed since the date the goods were first delivered, if the specified burden under the multilevel marketing contract is the purchase of goods (excluding rights to use a facility or to be provided with services; hereinafter the same applies in this paragraph) for resale, and if the date of the first delivery of the goods that were purchased based on the multilevel marketing contract is after the date on which the multilevel marketing affiliate received the document; the same applies in paragraph (1) of the following Article) (if the multilevel marketing affiliate did not cancel the multilevel marketing contract under the provisions of this paragraph by that time limit because the multilevel marketing affiliate was under the misconception that information about canceling the multilevel marketing contract under the provisions of this paragraph that the orchestrator or the solicitor had misrepresented to the multilevel marketing affiliate, in violation of the provisions of Article 34, paragraph (1), or that the general multilevel marketing distributor had misrepresented to the multilevel marketing affiliate, in violation of Article 34, paragraph (2), was true, or because the multilevel marketing affiliate was overwhelmed due to the orchestrator's, the solicitor's, or the general multilevel marketing distributor's use of intimidation, in violation of the provisions of Article 34, paragraph (3), then except when 20 days have passed after the date on which the multilevel marketing affiliate received a document delivered to them by the orchestrator, the solicitor, or the general multilevel marketing distributor, pursuant to the provisions of order of the competent ministry, that contains a notice to the effect that the multilevel marketing affiliate may cancel the multilevel marketing contract pursuant to the provisions of this paragraph). In this case, the person engaged in multilevel marketing may not claim damages or demand the payment of any penalty in connection with the cancellation of the multilevel marketing contract.

②The cancellation of a multilevel marketing contract as referred to in the preceding paragraph takes effect at the time the multilevel marketing affiliate states in writing or through electronic or magnetic records that the multilevel marketing affiliate is canceling the multilevel marketing contract.

③If a multilevel marketing contract is canceled as referred to in paragraph (1), the person engaged in multilevel marketing bears the costs required for taking back any goods that have already been delivered under the multilevel marketing contract.

④Any special provisions of a contract that run counter to the provisions of the preceding three paragraphs and that are disadvantageous to the multilevel marketing affiliate are hereby invalidated.

①When 20 days have passed after the date on which a multilevel marketing affiliate has received the document referred to in Article 37, paragraph (2), the multilevel marketing affiliate may effect a prospective cancellation of the multilevel marketing contract in question (if the multilevel marketing affiliate did not cancel the multilevel marketing contract under the provisions of paragraph (1) of the preceding Article by the relevant time limit because the multilevel marketing affiliate was under the misconception that information about canceling the multilevel marketing contract under the provisions of that paragraph that the orchestrator or the solicitor had misrepresented to the multilevel marketing affiliate, in violation of the provisions of Article 34, paragraph (1), or that the general multilevel marketing distributor had misrepresented, in violation of Article 34, paragraph (2), was true, or because the multilevel marketing affiliate was overwhelmed due to the orchestrator's, the solicitor's, or the general multilevel marketing distributor's use of intimidation, in violation of the provisions of Article 34, paragraph (3), at the time when 20 days have passed after the date on which the multilevel marketing affiliate received a document delivered to them by the orchestrator, the solicitor, or the general multilevel marketing distributor, pursuant to the provisions of order of the competent ministry, that contains a notice to the effect that the multilevel marketing affiliate may cancel the multilevel marketing contract under the provisions of paragraph (1) of the preceding Article).

②If a multilevel marketing contract has been canceled pursuant to the provisions of the preceding paragraph, and the person carrying on the multilevel marketing undertaking has already sold (including arranging the sale of) the goods associated with the multilevel marketing undertaking to the multilevel marketing affiliate (limited to the person who entered into the relevant multilevel marketing contract (excluding a multilevel marketing contract to change the terms of transactions) within the past one-year period; hereinafter the same applies in this Article), the multilevel marketing affiliate may cancel the contract for the sale of the goods (including the part of the multilevel marketing contract concerning the sale of goods that are connected with the specified burden involved in the relevant multilevel marketing transactions; hereinafter referred to as the "sales contract for goods" in this Article), except in the following cases:

③If a multilevel marketing contract is canceled pursuant to the provisions of paragraph (1), the person carrying on the multilevel marketing undertaking may not demand that the multilevel marketing affiliate pay an amount of money that exceeds the aggregate of the amount of costs normally required for entering into and performing a contract (if the case falls under one of the following items, that amount plus the amount specified in the relevant items for the cases listed in them) and the amount of the relevant damages for delay based on the statutory interest rate, even if there is a provision for liquidated damages or a provision for a penalty:

④When a sales contract for goods is canceled pursuant to the provisions of paragraph (2), the person engaged in the sale of goods associated with that multilevel marketing undertaking may not demand that the multilevel marketing affiliate pay an amount of money that exceeds the aggregate of the amount specified in the relevant items among the following items for the cases listed in them and the amount of the relevant damages for delay based on the statutory interest rate, even if there is a provision for liquidated damages or a provision for a penalty:

⑤If a sales contract for goods is canceled pursuant to the provisions of paragraph (2), the orchestrator of the set of related multilevel marketing undertakings with which the goods are associated is jointly and severally liable for the performance of any obligations of the person selling the goods which have arisen from that cancellation.

⑥Any special provisions that run counter to the provisions of the preceding paragraphs and that are disadvantageous to the multilevel marketing affiliate are hereby invalidated.

⑦The provisions of paragraphs (3) and (4) do not apply to goods or services associated with a multilevel marketing undertaking that are sold or provided through installment sales.

①If a multilevel marketing affiliate was under a misconception specified in item (i) or (ii) as a result of the orchestrator's or the solicitor's having engaged in conduct listed in that item in soliciting a multilevel marketing contract connected with the set of related multilevel marketing undertakings orchestrated by the orchestrator, or if the multilevel marketing affiliate was under a misconception specified in item (iii) as a result of a general multilevel marketing distributor's having engaged in conduct listed in that item in soliciting the affiliate's entry into the multilevel marketing contract connected with its multilevel marketing undertaking, because of which the multilevel marketing affiliate manifested the intention to offer to enter into or accept a multilevel marketing contract, the multilevel marketing affiliate may retract the manifestation of the intention to offer to enter into or accept the contract; provided, however, that this does not apply if the counterparty to the multilevel marketing contract was unaware of the conduct by the orchestrator, the solicitor, or the general multilevel marketing distributor at the time the multilevel marketing contract was entered into:

②The provisions of Article 9-3, paragraphs (2) through (5) apply mutatis mutandis to a retraction under the provisions of the preceding paragraph of the manifestation of the intention to offer to enter into or accept a multilevel marketing contract.