MLM organization refers to an illegal organization that calculates and pays remuneration to the developed personnel on the basis of the number or performance of directly or indirectly developed personnel, or requires the developed personnel to obtain the qualification to join on the condition of paying a certain fee, so as to organize the developed personnel to obtain wealth.
Consumer behavior and business behavior are vague, and pyramid sellers use some "tricks". Propaganda of investment and financial management behavior in the early stage has become a consumer unconsciously in the later stage; Or propaganda is a consumer behavior and later becomes an investor; Even quoted vague concepts such as "consumption capitalization" and got lost between investment and consumption.
Legal rights protection brings many difficulties (note: consumer behavior and investment behavior are two different legal concepts, and the applicable laws are: consumer rights protection law and contract law).
Companies specializing in pyramid selling shall not be treated as unit crimes according to the provisions of judicial interpretation, and their organizers and main participants shall be convicted and punished as natural persons.
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 means, new trends and new trends of pyramid schemes, and constantly crack down on pyramid schemes.
According to Article 2 of the Supreme People's Court's June 1999 Interpretation on Relevant Issues Concerning the Specific Application of Law in the Trial of Unit Crimes, "companies, enterprises and institutions established by individuals for illegal and criminal activities commit crimes, or after the establishment of companies, enterprises and institutions, the main activity is to commit crimes."