The direct selling industry was first introduced to Taiwan by American and Japanese companies at the end of 1980. However, the direct selling industry started with some unpleasant experiences. Some illegal companies introduced fraudulent schemes into Taiwan as they thought it a good timing for tapping profits illegally while Taiwan's economy had started to develop rapidly. The scandal of "Tai-Cha" broke out in 1981. Because the social public didn't understand the nature of direct selling which was still pretty unfamiliar to them, the social public couldn't tell the differences between the honesty and crooked direct-selling companies. While the scandal was intensively reported by the press media, the image of direct-selling was heavily damaged. That scandal created a notorious beginning for the development of Taiwan's direct-selling industry.

　　To change the public's disgraceful impression of the direct selling, and to promote correct direct-selling philosophy, and to accelerate building the direct-selling industry's social order and self-discipline, Mr. Charles Cheng, the chairman of Formosa Magazine Press, Ltd., led other initial founding members: Amway, Avon, Lux Far East, President Natural and Sunpak to form a self-disciplined Direct Selling Club in April, 1986. This Club was operated under the title of "Direct Selling Club". Though this club couldn't operate with a legal license of association, it was still involved in international direct-selling aggressively, and applied for the membership of World Federation Direct Selling Associations (WFDSA), and became its 30th national member.

　　In the next 5 years following the foundation of the Direct Selling Club, for gaining rectification of this Club's title and its legal position, the founding members spent lots of efforts on providing the nation's governing institutions complete and correct information on the direct-selling industry, and expressed the strong will for establishing "Taiwan R.O.C. Direct Selling Association". The Club submitted the application 3 times, and initiated signature support among domestic direct-selling companies. The WFDSA also offered assistance for enacting articles, and association affair-processing systems, and membership application in accordance with Taiwan's social culture. The Taiwan R.O.C. Direct Selling Association was founded with the approval of Ministry of Domestic Affairs in August, 1990. On Dec. 12th of the same year, the first public charity organization of direct selling industry was founded and Mr. Charles Chen, chairman of Formosa Magazine Press, Ltd., was elected unanimously by all members as the first-termed chairman of this association.

　　Since the foundation of the Direct Selling Club, the Taiwan's direct selling industry has been developing for over 18 years. All influential direct selling companies among Taiwan market have all become the members of the Taiwan R.O.C. Direct Selling Association, promoting Taiwan's direct selling industry keeping pace with international market development trend. For more than 10 years, the Taiwan R.O.C. Direct Selling Association, has been devoted to functions such as integration, coordination, self-regulation, communication, researching, development, international intercommunion and promotion of sound development of the Association. The association witnessed each stage of Taiwan direct selling industry development history.In the introduction stage in the early 1980s, the direct selling industry was synonymous with fraudulence to the Taiwan's social public. In the growth stage in the 1990s, both Taiwan and foreign direct selling companies experienced rapid business sales growth. Taiwan's direct selling industry has advanced into the maturity stage since the advent of 21st century while plenty of impressive business operation performances have been made. In the same period, "Fair Trade Law" and "Supervisory Regulations Governing Multi-level Sales" were promulgated in 1992 and the Taiwan's direct selling industry started to advance into an era when related governing laws were enacted. The promulgation of related laws laid a foundation for the industry's sound development in the following years, and initiated the era abounding with the most impressive business performances for Taiwan's direct selling industry. Meanwhile, the direct selling industry has started to be fully affirmed by Taiwan's academics, and multi-level marketing courses are also already introduced into universities formally in Taiwan. National Sun Yat-sen University established a "Direct Selling Academic Research and Development Center" and has hosted direct selling research and discussion conference annually and announced dissertations on the direct selling industry study. The Association has been experienced the development of Taiwan's direct selling business with all members altogether. Taiwan's direct selling companies have conquered economic recession in the last few years and submitted a bright performance record.

　　Fair Trade Commission of the Execution Yuan, the governing institution of the direct selling industry, has upgraded the law status of "Supervisory Regulations Governing Multi-level Sales" in July, 2004, and uses this law system as a sole governing law for regulating the direct selling industry and forestablishing complete market mechanism. According to the statistics of the Fair Trade Commission, there have already been 3,818,000 members enrolled in direct selling activities as of the end of 2003. In average, there is one in every 100 persons joining multi-level marketing industry. It has increased up to one million members more than 10 years ago. All those data indicate that the direct selling has already been highly accepted and recognized among Taiwan's social public. 264 direct selling companies contribute to annual sales volume of NT$52 billion and 20% annual growth over the previous year. The sales volume of the Association's members has increased in the last 2 years. 30 members' sales volume comprises over 50% of the total domestic market sales volume. While mainland China may lift the ban on multi-level marketing industry in 2005, Taiwan's direct selling companies promise a bright future in global market.

　　Under the Association's leadership, the Taiwan's direct selling companies have enhanced the social public's impression toward the direct selling industry by executing the principles of industry's self-discipline, and operation efficiency, and also have strengthened the communication with the parliament and law enforcement authorities. The direct selling industry has established a intercommunion path with the government, academics, consumer organizations, press media, and started to get rid of negative images borne by the social public and devoted to perpetual, honest and decent business operation.