These Regulations are formulated in accordance with the provisions of Article 38 of the Multi-Level Marketing Supervision Act.

The term Multi-level Marketing Enterprises and Participants Protection Institute (hereinafter referred to as EPPI) used in the Regulations refers to the incorporated foundation established in accordance with the Regulations.

The functions of the EPPI are as follows:
1.Mediating civil disputes between multi-level marketing（hereinafter referred to as MLM）enterprises and participants;
2. Assisting participants to bring lawsuits to court;
3.Advancing and recovering payment and damage compensations from MLM enterprises, payable to the participants, as a result of MLM civil disputes;
4. Managing and employing the protection fund, annual fees and accrued interest;
5. Enhancing MLM enterprises and participants’ awareness of MLM regulations;
6. Assisting training activities;
7. Providing information service with regard to MLM regulations.
8. Counseling with matters related to guidance on and evaluation of the dispute resolution mechanism between the MLM enterprises and their participants;
9. Provide incentives to those who report violations of Article 6 and Article 18 of the Multi-Level Marketing Supervision Act;
10. Address other matters favorable to the protection of the rights and interests of the participants, and the development of the MLM industry.