2. According to Article 7 of the MLM Prohibition Ordinance, the following acts are pyramid schemes:
(1) The organizer or operator, through the development of personnel, requires the developed personnel to develop other personnel to join, and calculates and pays remuneration (including material rewards and other economic benefits, the same below) to the developed personnel based on 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 to join or develop other personnel 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.
Extended data
Article 24
Whoever commits the acts specified in Article 7 of these Regulations and organizes pyramid schemes shall be confiscated by the administrative department for industry and commerce, and shall be fined not less than 500,000 yuan but not more than 2 million yuan; If a crime is constituted, criminal responsibility shall be investigated according to law.
Whoever commits the acts specified in Article 7 of these regulations, introduces, lures or coerces others to participate in pyramid schemes, shall be ordered by the administrative department for industry and commerce to stop the illegal acts, confiscate the illegal property and illegal income, and impose a fine of more than 654.38 million yuan and less than 500,000 yuan; If a crime is constituted, criminal responsibility shall be investigated according to law.
Anyone who participates in pyramid schemes in the acts listed in Article 7 of these regulations shall be ordered by the administrative department for industry and commerce to stop the illegal acts and may be fined up to 2000 yuan.
Article 25
When the administrative department for industry and commerce punishes in accordance with the provisions of Article 24 of these regulations, it may, in accordance with the provisions of relevant laws and administrative regulations, order it to suspend business for rectification or revoke its business license.
Article 26
Those who provide business premises, training places, sources of goods, storage and other conditions for pyramid schemes as stipulated in Article 7 of these regulations shall be ordered by the administrative department for industry and commerce to stop the illegal acts, confiscate the illegal income and impose a fine of 50,000 yuan to 500,000 yuan.
Those who provide Internet information services for pyramid selling activities stipulated in Article 7 of these regulations shall be ordered by the administrative department for industry and commerce to stop the illegal acts and notify the relevant departments to be punished in accordance with the Measures for the Administration of Internet Information Services.
Article 27
If a party uses, exchanges, transfers or damages the sealed-up or detained property without authorization, the administrative department for industry and commerce shall order it to stop the illegal act and impose a fine of more than 5% and less than 20% on the passive use, exchange, transfer or damage of the property; Those who refuse to make corrections shall be fined for passive use, exchange, transfer and damage of property value 1 times and less than 3 times.
Article 28
Whoever commits the acts specified in Article 10 of these regulations or refuses or obstructs the law enforcement officers of the administrative department for industry and commerce to investigate and deal with pyramid schemes according to law, which constitutes a violation of public security management, shall be punished by the public security organ in accordance with the laws and administrative regulations on public security management; If a crime is constituted, criminal responsibility shall be investigated according to law.
Article 29
The administrative department for industry and commerce, public security organs and their staff abuse their powers, neglect their duties, engage in malpractices for selfish ends, fail to investigate and deal with pyramid schemes in accordance with the duties and procedures stipulated in this Ordinance, or find that pyramid schemes are not investigated, or support, shield or condone pyramid schemes, which constitutes a crime, the directly responsible person in charge and other directly responsible personnel shall be investigated for criminal responsibility according to law; If it does not constitute a crime, it shall be given administrative sanctions according to law.
Baidu Encyclopedia: Provisions on Prohibiting MLM