Legislative regulation of MLM business in Kazakhstan

mehadihasan123456 · Post by **mehadihasan123456** » Mon Apr 21, 2025 5:46 am

Network marketing in Kazakhstan is a legal business model that is strictly regulated by law. The country has adopted the "Rules of Retail Trade Outside of Retail Outlets Through Network Marketing". These rules define MLM as a form of trade where independent partners independently or through the involvement of other sales agents promote products. They receive income in the form of commissions from personal sales and sales of participants attracted to the network structure.

Since 2010, the Direct Sales Association of Kazakhstan (DSA) has also been operating. The founders of the association developed a code of professional ethics that regulates relationships between clients, distributors and MLM projects in Kazakhstan. A company's membership in DSA increases trust in it, as it confirms compliance with the highest standards of product quality instagram data and consumer protection.

Having analyzed the legislative norms regarding network marketing in Kazakhstan, we have identified several key rules:

MLM business must be officially registered in Kazakhstan and obtain the appropriate license.

There must be written contracts between the company and its distributors that clearly state the rights and responsibilities of both parties.

The company must provide complete and reliable information about its products, their cost, terms of cooperation and return of goods.

The marketing plan should contain a transparent structure of commissions, bonuses and clear conditions for receiving them.

MLM companies are required to adhere to ethical business practices and avoid deception and manipulation when recruiting distributors.

It is also important to remember that about 74% of the population in Kazakhstan is Muslim and Islam plays a significant role in the country's culture. Therefore, in order for your MLM company's products and business opportunities to be attractive to a wide range of potential clients and partners, they must comply with Islamic norms and laws.