According to the Regulations on Direct Selling Management, enterprises engaged in direct selling should apply to the Ministry of Commerce through the competent commercial departments of provinces, autonomous regions and municipalities directly under the Central Government. On the basis of soliciting opinions from relevant departments and reviewing application materials according to law, the Ministry of Commerce makes a decision of approval or disapproval; If approved, a direct selling license will be issued. Without approval, no unit or individual may engage in direct selling activities. The Ministry of Commerce publishes the list of direct selling enterprises that have completed the approval and filing of service outlets through the direct selling industry management information system of the Ministry of Commerce (hereinafter referred to as the information system), and updates it in real time. By querying the list of direct selling enterprises, you can identify whether the enterprise is a direct selling enterprise.
According to the analysis of offline development model: enterprises need to pay admission fees or subscribe for some goods; According to the hierarchical relationship, offline investment has its own commission until several generations, which can be considered as pyramid schemes. The three forms of illegal profit mentioned in the above MLM Prohibition Regulations can all be judged as pyramid schemes. Article 7 of the MLM Prohibition Regulations stipulates: "Organizers or operators, through developers, require developers to recruit other personnel to join, form an upstream and downstream relationship, and calculate and pay network remuneration according to the developer's situation. Sales performance goes offline and seeks illegal benefits, which belongs to pyramid schemes. "
Judging whether a company is a legitimate direct selling company has the following points:
1. The enterprise obtained the direct selling license.
Regular direct selling enterprises have obtained direct selling licenses issued by the Ministry of Commerce. As long as you log in to the "Management Information Network of Direct Selling Industry of the Ministry of Commerce", you can find it as long as it is a direct selling enterprise issued by the state with a direct selling license.
2. No admission fee
MLM often requires people to pay a certain amount of money or buy a certain number of products to obtain membership, and directly or indirectly develops offline payment funds as the basis for calculating remuneration.
3. There are high-quality products that consumers can trust.
MLM often sells low-priced products in the form of high-tech or concept products, and some even sell fake and shoddy products and three-no products.
4. Enterprises should recruit direct sellers according to law.
5. There is a perfect return system.