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, and forming a hierarchy in a certain order, directly or indirectly taking the number of people who have developed as the basis for remuneration 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.