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.