Criminal lawyers interpret pyramid selling punishment regulations
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.
Article 24 of the Regulations on Prohibiting MLM, if anyone organizes or plans MLM activities in accordance with Article 7 of these regulations, the administrative department for industry and commerce shall confiscate the illegal income and impose a fine of 500,000 yuan to 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 26 Whoever provides business premises, training places, sources of goods, storage and other conditions 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 act, confiscate the illegal income and impose a fine of not less than 50,000 yuan but not more than 500,000 yuan.
Provisions of the Supreme People's Procuratorate and the Ministry of Public Security on the Standards of Criminal Cases under the Jurisdiction of Public Security Organs (II)
Article 78 In the name of business activities such as selling goods and providing services, organizations and leaders require participants to obtain membership by paying fees or buying enough goods and services, and form a hierarchy in a certain order. Taking the number of development personnel directly or indirectly as the basis of reward or rebate, luring and coercing participants to continue to develop pyramid schemes in which others participate, defrauding property and disrupting economic and social order. There are more than 30 people suspected of organizing and leading pyramid schemes, and the level is above level 3.