The administrative department for industry and commerce and the public security organ shall investigate and deal with pyramid schemes according to law within the scope of their respective duties. The administrative department for industry and commerce and the public security organs shall, when investigating pyramid schemes according to law, adhere to the principle of combining education with punishment, and educate citizens, legal persons or other organizations to consciously abide by the law.
MLM belongs to the industrial and commercial department, and it will be handled jointly with the public security department after the industrial and commercial department verifies that it belongs to MLM. It is of great significance to maintain market order, build a credit system, build a harmonious society and create a scientific development environment. Industrial and commercial departments at all levels should raise awareness, highlight key points, always maintain the high-pressure situation of cracking down on pyramid selling, strengthen the construction of social responsibility of direct selling enterprises, and effectively improve the efficiency of cracking down on pyramid selling and standardizing direct selling.
What are the constitutive elements of pyramid selling crime?
1, object element
The object of this crime is a complex object, which not only infringes on citizens' property ownership, but also infringes on the market economic order and social management order. The object of this crime is citizens' personal property, usually money. MLM is often accompanied by tax evasion and price gouging, which infringes on many social relations and legal objects.
2. Objective factors
Objectively, this crime is manifested as a serious act of organizing and engaging in pyramid selling activities and disrupting market order in violation of state regulations. However, not all pyramid schemes constitute a crime. If the circumstances are general, it is a general illegal act, and the administrative department for industry and commerce will give administrative punishment. Only if the perpetrator's pyramid scheme is serious will it constitute a crime, and criminal responsibility shall be investigated according to law.
3. Main elements
The subject of this crime is the general subject, and any natural person who has reached the legal age of criminal responsibility and has the ability of criminal responsibility can constitute this crime. This crime is mainly aimed at the organizers of pyramid schemes and the active participants who have repeatedly introduced, deceived and coerced others to join pyramid schemes. For the general participants, they will not be investigated.
4. Subjective factors
Subjectively, this crime is direct and intentional, with the purpose of illegal profit. That is to say, the perpetrator knows that he is carrying out pyramid selling activities, which is prohibited by national laws and regulations, but in order to achieve the purpose of illegal profit, he still carries out this kind of behavior, and has hope for the harmful results and actively pursues it.
At present, there is no crime of pyramid selling in law, which usually refers to the crime of organizing and leading pyramid selling activities. The specific sentencing standards are as follows:
1. Ordinary MLM participants do not constitute a crime and will not be sentenced;
2. Whoever 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 act, confiscate the illegal property and income, and impose a fine of 654.38 million yuan to 500,000 yuan; If the case constitutes a crime, criminal responsibility shall be investigated according to law;
3. Those who participate in pyramid schemes shall be ordered by the administrative department for industry and commerce to stop the illegal acts and may be fined up to 2000 yuan. When punishing the above acts, it may be ordered to suspend business for rectification or revoke its business license according to law;
4. Providing business premises, training places, sources of goods, warehousing and other conditions for pyramid schemes, the administrative department for industry and commerce shall order it to stop the illegal act, confiscate its illegal income and impose a fine of 50,000 yuan to 500,000 yuan. Those who provide Internet information services for pyramid schemes 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 relevant laws;
5. Those who organize pyramid schemes shall be confiscated by the administrative department for industry and commerce, and their illegal income shall be confiscated, and a fine of not less than 500,000 yuan but not more than 2 million yuan shall be imposed; If the case constitutes a crime, criminal responsibility shall be investigated according to law;
6. Organizing and leading pyramid selling activities, where the number of people suspected of organizing and leading pyramid selling activities is more than 30, and the level is above level 3, constitutes the crime of organizing and leading pyramid selling activities, and shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and fined. If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and fined. The determination of serious circumstances is as follows:
(1) Organized and led pyramid schemes involving more than 20 people1;
(2) Directly or indirectly collecting pyramid selling funds paid by personnel involved in pyramid selling activities, with a total amount of more than 2.5 million yuan;
(3) Having received criminal punishment for organizing and leading pyramid schemes, or having received administrative punishment for organizing and leading pyramid schemes within one year, and directly or indirectly developing more than 60 people to participate in pyramid schemes;
(four) causing serious consequences such as mental disorder and suicide of the personnel involved in pyramid schemes;
(5) Causing other serious consequences or adverse social impact.
I hope the above content can help you. Please consult a professional lawyer if you have any other questions.
Legal basis:
Article 224-1 of the Criminal Law of People's Republic of China (PRC) organizes and leads pyramid selling activities in the name of selling goods and providing services, requiring participants to obtain the qualification to join by paying fees or purchasing goods and services, forming a hierarchy in a certain order, directly or indirectly taking the number of people who have developed as the basis for reward or rebate, inducing or coercing participants to continue to develop others to participate, defrauding property and disrupting economic and social order, shall be sentenced to fixed-term imprisonment of not more than five years. If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and fined.