Illegal fund-raising with the gimmick of natural drugs, selling products in disguise for profit.
MLM refers to the act of calculating and paying remuneration to the developed personnel on the basis of the number of personnel or sales performance directly or indirectly developed by the developed personnel, or requiring the developed personnel to obtain the qualification to join on the condition of paying a certain fee, so as to seek illegal interests, disrupt economic order and affect social stability.
Relevant regulations:
MLM is suspected of violating the provisions of Article 224 of the Criminal Law: organizing and leading MLM 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 remuneration or rebate, inducing and coercing participants to continue to develop fraudulent property that others have participated in, thus disrupting economic and social order, and should also be sentenced to fixed-term imprisonment of not more than five years or criminal detention. If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and fined.