Zhao Lei criminal lawyer
Liaoning Ren Hang lawyer office
The State Council's MLM Prohibition Ordinance defines "MLM" as: "The MLM mentioned in this Ordinance refers to the behavior of organizers or operators to develop personnel, calculate and pay the remuneration of the developed personnel based on the number of directly or indirectly developed personnel or sales performance, or require the developed personnel to obtain the qualification to join on the condition of paying a certain fee, seek illegal interests, disrupt economic order and affect social stability". The Opinions of the Supreme People's Court, the Supreme People's Procuratorate and the Ministry of Public Security on Several Issues Concerning the Application of Laws in Handling Criminal Cases of Organizing and Leading MLM Activities defines MLM as: "In the name of selling goods, providing services and other business activities, participants are required to obtain the qualification to join by paying fees or purchasing goods and services, and based on the number of development personnel, a hierarchy is directly or indirectly formed in a certain order, which induces and coerces participants to continue to develop MLM activities involving others, defrauds property and disrupts economic and social order. If there are more than 30 people involved in pyramid schemes within the organization and the level is above the third level, the organizers and leaders shall be investigated for criminal responsibility. "