Illegal pyramid selling means that the organizer or operator requires the developed personnel to continue to develop others to join by developing offline personnel, and calculates and pays the remuneration including material benefits to the developed personnel based on the number of directly or indirectly developed personnel. Driven by huge interests, many participants even tricked their relatives into joining, which led to family breakdown and great social harm.
Extended data
laws and regulations
On August/0/0, 2005, the State Council executive meeting reviewed two core documents of direct selling laws and regulations, Regulations on Direct Selling Management [1]? The Regulation on Prohibiting Illegal MLM was promulgated by Premier Wen on August 3, 2005 1, and was officially promulgated in the form of the State Council Order on September, 20051.
Among them, the Regulations on Banning Illegal MLM will take effect one month earlier than the Regulations on Direct Selling Management. The two laws and regulations were issued on the evening of August 3 1 day, and distributed to relevant departments as planned on August 3 1 day and September 1 day.
In order to cooperate with the future supervision, the State Administration for Industry and Commerce will set up an independent institution similar to the Direct Selling Supervision Bureau. The upgraded institution will be a bureau-level unit with the same organizational structure as the Fair Trade Bureau, and the establishment plan of this institution has been reported to the State Administration for Industry and Commerce.
"illegal pyramid selling"
The Seventh Amendment to the Criminal Law adds one article after Article 224 of the Criminal Law as one of Article 224: organizing and leading business activities such as 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.
Whoever, directly or indirectly, lures or coerces participants to continue to develop others to participate in pyramid schemes based on the number of development personnel, defrauds property and disrupts economic and social order, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also be fined; If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and fined.
legal sense
"crack down on illegal pyramid schemes, curb the development of enterprises in gray areas, standardize the development of industries, and fulfill WTO commitments." A person familiar with the matter believes that the introduction of these two departments fully embodies the government's idea of managing first and then releasing, and marks a key step in the eight-year direct selling supervision process of China government.
Baidu encyclopedia-illegal MLM