The German-Chinese Online Workshop on Direct Selling took place on November 27, 2023. It was organized by the Sino-German Legal Cooperation Programme of GIZ GmbH on behalf of the Federal Ministry for Economic Cooperation and Development, in collaboration with the Price Supervision and Anti-unfair Competition Bureau / Office for the Regulating Direct Selling and Combating Pyramid Selling of the State Administration for Market Regulation (SAMR) in China. Six representatives from SAMR, working on direct selling and combating pyramid selling, participated. The workshop aimed to provide insights into the practice of direct selling and the regulation of this industry in Germany.
The workshop commenced with welcoming remarks from the program director of the Legal Programme, Dr. Marco Haase, and the Deputy Director of the Price Supervision and Anti-unfair Competition Bureau / Office for the Regulating Direct Selling and Combating Pyramid Selling of the State Administration for Market Regulation (SAMR) in China, Mr. Zhu. They emphasized the importance of bilateral cooperation and expressed their expectations for the workshop. In Mr. Zhu’s opening speech, he outlined the framework for the discussion. He highlighted the significance of direct selling for the Chinese market and the need for effective regulation to combat unfair business practices. He also provided an overview of his department’s role in Chinese market regulation and the status of legislative planning in this area.
Mr. Jochen Clausnitzer, Managing Director of the Federal Association of Direct Selling Germany, was the principal contributor to the workshop. Mr. Clausnitzer opened his presentation with a detailed introduction to the definition and development of direct selling in Germany. He presented the legal foundations and traced the development of the sector, emphasizing the growing economic significance of this distribution channel. The focus was on distinguishing between legal direct selling models and illicit pyramid schemes. He elaborated on Germany’s approach to mitigating unfair practices, detailing legal interventions and the proactive engagement of industry associations to delineate lawful direct selling from forbidden methods. Furthermore, he addressed the German legal landscape concerning unfair business practices, particularly targeting deceptive advertising and similar malpractices. Mr. Clausnitzer also highlighted the importance of self-regulation by the association, supported by codes of conduct and independent oversight commissions. He concluded with an overview of the legal protections and frameworks in place for direct selling in Germany, underlining their essential role in safeguarding consumers and sales partners.
The subsequent discussion delved deeper into the subject, with specific inquiries about Germany’s direct selling practices. Topics ranged from the involvement of legal entities as sales partners to the variety of products and services offered through direct selling, as well as the criteria used to identify legal versus illegal sales structures. Clausnitzer’s responses provided tangible insights into the operational nuances and regulatory aspects of Germany’s direct selling industry.
In his closing address, Mr. Zhu reflected on several key points. He expressed gratitude for the insightful presentation, which offered an in-depth view of German direct selling practices. Zhu highlighted the pertinence of these insights to China’s regulatory framework and voiced an eagerness to adopt and apply German experiences in China. Significantly, he conveyed interest in forming a self-regulatory body in China, mirroring the German model, to bolster the integrity and professionalism of China’s direct selling industry and effectively tackle unfair practices. Mr. Zhu also extended an invitation to German direct selling firms to engage with the Chinese market, emphasizing that the revision of relevant Chinese regulations would create a conducive framework for the expansion of German direct selling companies in China. This initiative is poised to deepen bilateral collaboration in direct selling and promote an exchange of best practices. Zhu concluded, affirming the workshop as a foundational step for future Sino-German engagements in the direct selling arena.
Dr. Haase concluded the workshop expressing gratitude and the intention to further explore and expand upon these discussions in the future.