As mentioned above, in terms of operation, compliance is one, and performance is zero. In the environment of increasing compliance requirements, business is not compliant, and all performance is temporary. Cosmetics sales behavior is the core of cosmetics enterprises to realize the value of cosmetics. In order to occupy a larger market share, cosmetics enterprises have launched incentive competition in sales channels construction, price strategy formulation, promotion measures implementation and other sales links. From the perspective of the market, competitive behavior brings vitality to the economy, promotes the development of production and social progress. However, competition is accompanied by a lot of improper behavior, such as monopoly, commercial bribery, pyramid schemes and so on. The above behavior, on the one hand, damages the legitimate rights and interests of competing products, infringes the interests of consumers, and destroys the healthy economic order; On the other hand, it also brings great business risks to the enterprise, which can lead to economic losses and criminal liability. The compliance of cosmetics sales behavior is an important part of the business compliance of cosmetics enterprises. This paper will discuss the business compliance of cosmetics sales behavior for reference.

Regulatory agency

At present, China's cosmetics sales behavior regulatory agencies are mainly national market supervision and management departments. Market supervision and administration departments are mainly responsible for: supervision and administration of market transactions, online commodity transactions and related services; To supervise and manage the quality of commodities in the field of circulation, organize and carry out consumer rights protection work in the field of service, and investigate and punish illegal acts such as counterfeiting and shoddy products; Investigate and punish cases of illegal direct selling and pyramid selling, supervise and administer direct selling enterprises, direct sellers and their direct selling activities according to law; We will investigate and punish illegal economic activities such as unfair competition and commercial bribery according to law. At the same time, the Ministry of Commerce and the public security department also bear specific regulatory responsibilities for the cosmetic sales behavior, such as the administrative license of cosmetics direct selling enterprises is responsible for the Ministry of Commerce; Public security departments are responsible for cracking down on criminal cases such as pyramid selling crimes and producing and selling cosmetics that do not meet health standards. The above relevant regulatory agencies supervise the sales of cosmetics in accordance with the law, and investigate the legal responsibilities of cosmetics enterprises and relevant responsible persons in accordance with the law. The supervision of cosmetics sales ensures the orderly development of the cosmetics industry and protects the legitimate rights and interests of consumers, which is indispensable for the development of the cosmetics industry. As far as the compliance of cosmetics sales behavior is concerned, cosmetics operators should pay attention to three problems: pyramid selling, commercial bribery and price monopoly.

Distribution and pyramid schemes

Cosmetics are fast moving consumer goods with high consumption frequency and large consumption base, so the marketing model is of great significance to cosmetics sales. Distribution is a kind of commodity circulation mode, that is, the producer sells the product to the consumer through a certain channel, which is the process of the product movement from the producer to the seller. Cosmetics manufacturers sell cosmetics to end consumers through distribution to achieve economic benefits. The distribution channels of cosmetics are mainly composed of starting brand owners, intermediate agents and end consumers. China has a vast territory, large regional differences, and many business challenges. Under the direct operation mode, the brand has high requirements for financial strength, human resources allocation, business management ability and supply chain management level, which is not convenient for rapid market development. In the distribution model, the brand side with the intermediary agent landing, less investment, high efficiency, fast and flexible, so in the field of cosmetics sales in China distribution is an important circulation model. In the distribution mode, according to the different trading conditions and market risk distribution, it can be divided into agent sales, purchasing and marketing modes, but it can not adopt pyramid marketing mode. Pyramid marketing is a form of commodity sales developed on the basis of direct selling, also known as "multi-level pyramid marketing". According to the Regulations on the Administration of the Prohibition of pyramid Selling, pyramid selling refers to the development personnel of organizers or operators who seek illegal benefits and disturb economic order by calculating and paying remuneration to the developed personnel based on the number or sales performance of the developed personnel directly or indirectly, or requiring the developed personnel to pay a certain fee as a condition of membership. Behavior that affects social stability. Pyramid selling seriously disturbs social order and affects social stability, which is prohibited by the Regulations on the Prohibition of Pyramid Selling and the Criminal Law. According to China's criminal law, in the name of business activities such as selling goods and providing services, organizations and leaders require participants to pay fees or purchase goods and services to obtain membership qualifications, and form hierarchies in a certain order, directly or indirectly using the number of development personnel as the basis for remuneration or rebates, luring or coerce participants to continue to develop others to participate, and defrauding property. Whoever engages in pyramid selling activities that disrupt economic and social order shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also be fined; If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and shall also be fined. The essential difference between distribution and pyramid selling is that pyramid selling belongs to financial activities, which realize illegal profits by collecting membership fees and team remuneration and belong to the category of crime; Distribution is a commercial activity, through the sale of products to achieve commercial purposes, there is no team remuneration, belongs to the category of marketing. In the practice of cosmetics business, especially the wechat business channel, it is necessary to carefully avoid the risk of pyramid marketing and scale sales model, so as not to cause unnecessary legal liability. Especially in the prevailing air of network distribution, it is necessary to be cautious about membership fees, team remuneration, multi-layer commission and other business models. Distribution or multi-level distribution is legal, but pyramid selling is prohibited by Chinese law.

Return points with commercial bribery

Cosmetics sales, agent sales rebates, decals, etc., are widely used in marketing and pricing strategies. In general, legitimate commercial concessions have two characteristics: openness, most of them are clearly written in the contract to reward the opposite party; Enter the account, truthfully enter the brand enterprise financial accounts. In selling or purchasing commodities, the operator may give the other party a discount or BA commission by express means; If the operator gives the other party discount or BA commission, it must be truthfully recorded in the account. In the field of cosmetics sales in line with these two, is generally normal commercial profit transfer behavior, in line with the principle of honesty and credit. Cosmetic operators in the commercial return point easy to step on the pit is commercial bribery. Commercial bribery refers to the behavior of business operators to buy customers' employees or agents and staff of relevant government departments through improper means in order to gain trading opportunities, especially to gain competitive advantages over competitors, in commodity trading (including services) activities, including commercial bribery, commercial bribery and introduction of commercial bribery. Commercial bribery is the negative influence of the development of commodity economy. Regulating commercial bribery is not only an inevitable requirement to improve the socialist market economic system and maintain the operation order of the market economy, but also an important content to prevent and punish corruption. From the characteristics of commercial bribery, commercial bribery is the intentional and voluntary behavior of the operator. Commercial bribery is carried out in a secret way, and the payments or concessions provided to the relevant personnel of the opposite side of the transaction are not reported to the employer or other personnel of the relevant personnel, but are also covered up by forging financial accounting books and other forms, which has great concealment. The object of commercial bribery is the personnel of the opposite side of the transaction that has a decisive impact on the transaction, usually the manager, procurement personnel, agents or other employees of the opposite side of the transaction, and also includes the third party units or individuals (such as schools, hospitals, government officials, etc.) that have a direct impact on the transaction activities.

According to China's criminal Law, any employee of a company, enterprise or any other unit who, by taking advantage of his position, exacts money or property from another person or illegally accepts money or property from another person to seek benefits for another person, if the amount involved is relatively large, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention; If the amount is huge, he shall be sentenced to fixed-term imprisonment of not less than five years and may also be sentenced to confiscation of property. In judicial practice, the larger standard is RMB 5,000. In the cosmetics sales link, if the corresponding refund point of the cosmetics operator is given secretly to the employee of the other side of the transaction in order to obtain trading opportunities, it is suspected of constituting commercial bribery. Cosmetics operators should standardize their own sales incentive system design, return incentives, sales of decals, etc. should be paid to agents in the form of express, account, or pay to agents in the form of sales, so as not to step on the thunder.

Price control and monopoly

In the consumer goods industry, the product sales channels are complex, the product sales process involves many participants, and the stable price system is the guarantee for the product to achieve the sales purpose. Especially in the multi-channel operation of the company, channel competition incentive, different channel price control is a very sensitive issue. Brand operators often adopt product segmentation, channel price guidance and other measures to ensure the price balance between different channels. In the cosmetics sales process, in order to maintain a relatively stable price system, some cosmetics companies will agree with agents on product resale prices or minimum sales prices under the distribution model, which is suspected to constitute monopoly and has huge legal risks. Monopoly behavior is actually a kind of behavior against free competition, its purpose is to expand its own economic scale or form a favorable economic position by improper means. According to China's Anti-monopoly Law, economic monopoly behavior usually consists of the following three forms: (1) monopoly agreement; (2) Abuse of dominant market position; (3) Concentration of business operators that has or may have the effect of excluding or restricting competition. China's Anti-monopoly Law juxtates the provisions on administrative monopoly with economic monopoly. It is easy for cosmetics companies to trigger monopoly agreements in daily sales.

Monopoly agreement, also known as cartel, refers to the agreement or other cooperative behavior reached or taken between operators to exclude or restrict competition, which is also divided into horizontal monopoly agreement and vertical monopoly agreement. Horizontal monopoly agreement refers to the monopoly agreement formed between operators with competitive relations. The vertical monopoly agreement refers to the monopoly agreement reached between the operator and the downstream counterpart. As far as vertical monopoly agreements are concerned, China's Anti-monopoly Law prohibits operators from entering into the following monopoly agreements with their trading counterparts: (1) fixing the price of reselling commodities to a third party; (2) setting a minimum price for the resale of goods to third parties; (3) Other monopoly agreements identified by the anti-monopoly law enforcement agency of The State Council. According to the Anti-Monopoly Law, where a business operator, in violation of the provisions of this Law, reaches and implements a monopoly agreement, the anti-monopoly law enforcement agency shall order him to stop the illegal act, confiscate the illegal income, and impose a fine of not less than 1 percent but not more than 10 percent of the previous year's sales; If the monopoly agreement reached has not been implemented, a fine of not more than 500,000 yuan may be imposed. In the sales process, cosmetics companies can use channels for products, sales guidance prices and other ways to control the stability of the product price system, but must not directly agree with agents with mandatory product resale prices or minimum sales prices, otherwise it will step on the pit.