TPreliminary Prevention Program (PPP) is aimed at providing basic guidelines to design, operate and manage the Internal Control System for reconciling consumers’ discontent and enabling MLM companies autonomously abide by laws and regulations. It is expected that PIP will enable MAC&CO’s member companies to gain consumers’ trust by verifying they do observe DDSA and eventually help raise their value and enhance the competitiveness based on improved internal and external imagery.
Introduction of PPP will increase MLM companies’ commitment to abide by laws and regulations such as DDSA and establish this commitment as a corporate culture, as well as help them deploy a Risk Management System for persistent management of DDSA related risks.

Major Content PPP

Upon a request of the member company, MAC&CO inspects whether the company complies with DDSA and other regulations to avoid possible violations in advance. According to the preliminary inspection standards MAC&CO carries out systematic in-depth inspection for 119 items in total 6 fields such as observance of mutual aid contracts, payment of support allowances, withdrawal of subscription, prohibited activities, membership and withdrawal of MLM distributors, and announcement of the change of company name or address.
The inspection result undergoes a review by the preliminary inspection board organized with industry experts such as accountants, lawyers and others, and is submitted to the member company in the form of report. Based on this report, the member company can prevent the risks of violating DDSA and other regulations in advance.

Expected Effect

It is expected that PPP will clearly distinguish MAC&CO member companies from unregistered or illegal companies by encouraging them to abide by laws and preventing consumer damages by strengthening MAC&CO's consumer damage prevention task.