The "perfect" system violates the Regulations on the Administration of Direct Selling.
The so-called pyramid selling: Article 14 stipulates the Regulations on the Administration of Direct Selling. Direct selling enterprises and their branches shall not publish paid advertisements sold by the advertised sellers, and shall not become sellers with one of the following acts on the condition of paying fees or buying goods. Article 7.
"Regulations on Prohibiting MLM", MLM [2] refers to the fact that the organizer or operator requires to pay a certain fee by developing employees, or pays the fee in disguised form to obtain franchise or let others obtain franchise qualification and develop commodities:
The perfect combination bought a set of "lead an honest and clean life" health care products and lectures, mainly to please the so-called successful people and publicize their remuneration.
2:! In violation of the provisions of Article 24 of the Regulations on the Administration of Direct Selling, direct selling enterprises must at least pay remuneration to direct selling enterprises, and direct sellers can only calculate the sales income of consumer goods according to the monthly remuneration they directly pay to direct sellers, and the total remuneration (including commissions, bonuses, rewards and other forms of economic benefits) shall not directly exceed the direct sellers themselves.
30% of the sales revenue of consumer goods. The word MLM in the MLM Prohibition Ordinance refers to the organizer or operator of development, and the development of employees is direct or indirect sales or quantity development. Personnel and salary are calculated according to the perfect indirect sales staff, which is the basis of development and payment.
3:! The Measures for the Administration of Health Foods stipulates that there are developers of health foods who claim to be examined and confirmed by the Ministry of Health. After passing the preliminary examination, the local provincial health administrative department shall apply, and the Ministry of Health shall approve the report. The Ministry of Health shall issue the Health Food Approval Certificate to the health food that has passed the examination, with the approval number.