However, whether it is pyramid selling or not needs to be judged by yourself. Please protect your property and stay away from pyramid schemes.
According to the State Council Decree No.444 "Regulations on Prohibiting MLM".
Article 2. MLM refers to the behavior that organizers or managers develop personnel to calculate and pay remuneration to the developed personnel on the basis of the number of personnel or sales performance directly or indirectly developed by them, or to require the developed personnel to obtain the qualification to join on the condition of paying a certain fee, thus disrupting the economic order and affecting social stability.
Article 7 The following acts belong to pyramid selling:
(1) Organizers or business operators, through the development of personnel, require the developed personnel to send other personnel to join them, and calculate and pay remuneration (including material rewards and other economic benefits, the same below) to the developed personnel on the basis of the number of personnel directly or indirectly developed, so as to seek illegal benefits;
(2) The organizer or business operator, through the development personnel, requires the developed personnel to pay the fees or pay the fees in disguised form by subscribing for commodities, etc. , so as to obtain the qualification of participants, develop other people to join, and seek illegal interests;
(3) The organizer or business operator requires the developed personnel to develop other personnel to join, thus forming an online relationship, and calculating and paying online rewards according to the sales performance of offline personnel to seek illegal benefits.
MLM refers to the illegal behavior that organizers and developers calculate and pay remuneration to the developed personnel on the basis of the number or performance of the directly or indirectly developed personnel, or require the developed personnel to obtain the qualification to join on the condition of paying a certain fee. The essence of pyramid selling is "Ponzi scheme", that is, the money of the latecomers is distributed to the income of the pioneers.
New pyramid scheme: no restrictions on personal freedom, no ID cards and mobile phones, no group classes. But under the banner of capital operation, attracting people to cheat money, using luxury cars, wearing gold and silver, etc. Use money to attract your relatives and friends, and finally let you lose everything.
Although various disguised pyramid schemes have different names, their behaviors are the same:
1. Participants are eligible to join or introduce others to join by paying the "head fee" or "qualification fee" or paying the "head fee" or "qualification fee" in disguised form in the form of subscribing goods (including services);
2. Introduce others to participate in the development of offline personnel, so as to establish an organizational system with the redistribution of wealth within the upper and lower levels;
3. The organizer pays the previous participants with part of the expenses paid by the participants to maintain the operation; The income of participants is determined by the order of joining and the number of development personnel.
MLM is a kind of multi-level direct selling, the main difference is that MLM charges a high membership fee, while multi-level direct selling generally has no or little membership fee. It can be seen from here that pyramid selling is a naked fraud, and its harm has been widely recognized.
References:
decree of the state council of the people's republic of china