All appeals filed by the prosecutor against the Defendants are dismissed.

1. A person who has joined the consortium with a summary of the reasons for appeal is admitted to the consortium after hearing an explanation of retail profits and support allowances and soliciting that such profits may be earned if he/she is enrolled in the consortium or higher position through the consultant. Therefore, the consultant is deemed to be a multi-stage salesman.

In addition, in relation to the sales activities of cooperative companies, the purpose of those who become a consultant is not to give retail profits as a consultant, but to receive retail profits and support allowances from the cooperative company. Ultimately, through the consortium, the cooperation company is going to become a partner or a higher position through the consortium, and the cooperation company is engaged in the same activity as the cooperation company that sells the goods, and therefore, the status of the consultant is the middle.

It is unreasonable to deem that all or part of the consumers as subordinate salespersons of a specific person and do the same activity as the activity of a specific person does not meet the requirement of multi-level marketing is unreasonable because it is excessively strict.

In addition, even if the consortium is not a multi-level marketing salesperson, it shall be deemed that it constitutes multi-level marketing organization at the stage of cooperation or higher, but the court below did not decide on the act that puts the burden on maintaining the eligibility for registration of multi-level marketing salesperson at the stage of collaboration or higher.

Therefore, the court below erred by misapprehending the legal principles or by misapprehending the legal principles, which affected the conclusion of the judgment.

2. Determination

A. The lower court determined that the sales contract constitutes multi-level marketing under the former Door-to-Door Sales Act. The lower court: (a) sold goods, etc. supplied by a specific person (multi-level sales business operator) under the former Door-to-Door Sales Act to consumers; and (b) purchased all or part of the consumers as subordinate sales members of a specific person (multi-level sales salesperson) and signed as a specific person (multi-level sales salesperson).