A. An agency which entered into an agency contract with Defendant Co., Ltd. (hereinafter “Defendant Co., Ltd.”) in the grounds of appeal for erroneous determination of the facts by the Defendants is not a multi-level salesman since it was supplied with goods by the Defendant Co., Ltd. as wholesale price and sold them to consumers, and only obtains retail profits, and is not paid bonuses.

In addition, the branch is paid 5-10% of the total sales, including the sales of an agency that it recruits and manages, but if the agency that is not a consumer satisfies certain requirements among the agencies that are not a consumer, the branch is established upon entering into a contract of the branch, and if such a branch satisfies certain requirements, it cannot be said that it constitutes a "case where a consumer becomes a salesperson" and thus, it cannot be deemed a multi-level sales organization. The sales organization of the defendant company composed of such a salesperson cannot be deemed a multi-level sales

Even if a multi-level marketing salesperson is a multi-level marketing salesperson, the superior branch office, and the chief headquarters are merely paying additional monetary rewards to the branch office or headquarters meeting the requirements of each month among the branch offices or headquarters, and cannot be considered as a successive level or class. The sales organization of the defendant company, which is only the two stages of branch offices and headquarters, is not a multi-level marketing organization under the former Door-to-Door Sales Act (wholly amended by Act No. 11324, Feb. 17, 2012; hereinafter referred to as the "former Door-to-Door Sales Act").

Nevertheless, the court below erred by misunderstanding that the sales form of the defendant company constitutes multi-level marketing activities and thereby affecting the judgment.

B. In order to become a multi-level salesman's branch at the sales organization of the defendant company based on mistake of facts, the prosecutor purchased goods equivalent to KRW 198-2750,00 per person and paid the same amount as the agency.