Article 7 of the MLM Regulations on Prohibiting MLM belongs to MLM:
(1) The organizer or operator, through the development of personnel, requires the developed personnel to develop other personnel to join, and calculates and pays remuneration (including material rewards and other economic benefits, the same below) to the developed personnel based on the number of personnel directly or indirectly developed, so as to seek illegal benefits;
(2) The organizer or business operator, through the development personnel, requires the developed personnel to pay the fees or pay the fees in disguised form by subscribing for commodities, etc. , so as to obtain the qualification to join or develop other personnel to join and seek illegal interests;
(3) The organizer or business operator requires the developed personnel to develop other personnel to join, thus forming an online relationship, and calculating and paying online rewards according to the sales performance of offline personnel to seek illegal benefits.
MLM refers to the illegal behavior that organizers and developers calculate and pay remuneration to the developed personnel on the basis of the number or performance of the directly or indirectly developed personnel, or require the developed personnel to obtain the qualification to join on the condition of paying a certain fee. The essence of pyramid selling is Ponzi scheme, which is to distribute the money of latecomers to the income of pioneers.
New pyramid scheme: no restrictions on personal freedom, no ID cards and mobile phones, no group classes. But under the banner of capital operation, attracting people to cheat money, using luxury cars, wearing gold and silver, etc. Use money to attract your relatives and friends, and finally let you lose everything.
1April 2, 9981day, the government of China announced a total ban on pyramid selling. Public security organs throughout the country adhere to the "zero tolerance" attitude towards pyramid schemes, continue to focus on key cases, key areas and key areas, keep a close eye on new methods, new trends and new trends of pyramid schemes, and constantly crack down on pyramid schemes.
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Methods of identifying pyramid schemes
First of all, look at legitimacy. The best way to distinguish pyramid schemes is to start with legality. In China, any business model must be approved and put on record by the relevant authorities. Therefore, when someone pulls you to join a company, do the sales of a product, develop business, and do consumer rebates, the first thing to look at is whether you have a formal business license. If they tell you that "we are not illegal, but we are also illegal, so we don't have a formal business license", then please believe that this is 90%.
Second, see if it has created social value. From the concept of economics, whether this kind of business form or commodity has created social value, that is to say, what benefits have it brought to society? If it has not, or can only produce small social value but is promised by the organizer to bring you unlimited wealth, it is probably pyramid selling.
Third, look at the profit point, that is, where the money you earn comes from. An obvious feature of pyramid selling behavior is that the income obtained by participants comes not from the reasonable income of selling products or services, but from the fees paid by others when they join, and most of them are paid by the number of people who pull their heads or develop offline.
Fourth, look at the mode of operation. Many MLM organizations are secretive when developing their "business". After all, they are shady. Once they go to the sun, they are in danger of being exposed by discerning people and being punished by law. Therefore, MLM personnel often fabricate lies such as "only some people can do such a good business, and everyone will be confused when they do it", which just caters to those who think they know everything, but are better than others, but in fact their resolution is limited.
Fifth, look at the way of publicity. The propaganda methods of pyramid schemes are basically characterized by exaggeration and boasting all over the sky. For example, attracting people under the banner of capital operation, attracting members with cases of so-called "successful people" such as luxury houses, luxury cars and wearing gold and silver, influencing members' cognition by collecting ID cards, mobile phones, secret group classes, etc., achieving the effect of "brainwashing", and finally making you invest crazily, and finally losing all your money. In addition, some MLM organizations will disguise themselves with lofty political words such as national reform and opening up, accurate poverty alleviation and comprehensive well-off society. On the one hand, they say they are responding to national policies, and on the other hand, they are doing "illegal" activities that they dare not openly carry out in secret.
Sixth, look at the composition of personnel. The personnel composition of the MLM organization presents a very obvious feature, that is, regardless of men, women, children, fat, ugly, cultural background or work skills, as long as you can talk and move, as long as you are an individual and can pull people off the assembly line, the MLM organization needs you. If the so-called "company" or "enterprise" you join has this feature, then leave quickly. This is probably an MLM organization.
References:
MLM- Baidu encyclopedia