Malaysia legislation
Section 44
Section 44
(2)
Without prejudice to the generality of subsection (1)
regulations may be made—
(a)
to regulate the issue, circulation or distribution of documents, whether advertisements, prospectuses, circulars or notices, which contain—
(i)
an invitation to any person to become a participant in direct sales schemes; or
(ii)
information calculated to lead directly or indirectly to any person becoming a participant in such schemes, or to prohibit any such document from being issued, circulated or distributed unless it complies with such requirements as to the matters to be included or not to be included in it as may be prescribed by the regulations;
(b)
to prohibit the vendor or any of the vendors of, or any participant in, direct sales schemes from—
(i)
supplying any goods to a participant in the scheme;
(ii)
supplying any training facilities or other services for such a participant;
(iii)
providing any goods or services under a transaction effected by such a participant;
(iv)
being a party to any arrangements under which goods or services are supplied or provided as mentioned in subparagraph (i), (ii) or (iii); or
(v)
accepting from any such participant any payment, or any undertaking to make payment, in respect of any goods or services supplied or provided as mentioned in subparagraph (i), (ii), (iii) or (iv)
or in respect of any goods or services to be so supplied or provided, unless (in any such case) such requirements as are prescribed are complied with;
(c)
to prohibit certain provisions or classes of provisions from being included in a contract to which this Act applies;
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(d)
to regulate all matters relating to direct sales schemes and the conduct of direct selling;
(e)
to prescribe the code of conduct of the vendor or the participants connected with a direct sale scheme;
(f)
to prescribe the offences under this Act or the regulations which may be compounded, the amount of such compound and the procedure to be followed in compounding such offences; and
(g)
to prescribe anything that may be or is required to be prescribed.
(3)
The power conferred on the Minister under this section may be exercised so as to—
(a)
make the contravention of any of the provisions of the regulations an offence;
(b)
provide different provisions—
(i)
in relation to different descriptions or classes of direct sales schemes to which this Act applies;
(ii)
in relation to a direct sales scheme which is or was in operation on a date specified in the regulations; or
(iii)
in relation to different descriptions or classes of participants in such schemes.
(4)
For the purpose of this section, “participants” means persons who take part in direct selling schemes and includes distributors, sales representatives, agents, dealers and purchasers.
Amendment of Schedule