1. Simply based on the above description can not determine whether it belongs to the category of pyramid schemes, pyramid schemes refers to the organizer or operator to develop people, through the development of people to be developed to the number of direct or indirect development of the number of people or sales performance as the basis for calculating and paying compensation, or require the development of people to pay a certain amount of money as a condition to obtain the qualification of joining the way to obtain illegal benefits, disrupting the economic order, affecting social stability, the behavior of the people to be developed to the number of people to be developed to the number of people or sales results. The behavior of social stability.

2. According to Article 7 of the Regulations on the Prohibition of Distribution, the following acts are considered as acts of distribution:

(1) The organizer or operator, through the development of people, requires the people to be developed to develop other people to join the company, and calculates and pays remuneration (including material incentives and other economic benefits, hereinafter the same) to the developed people on the basis of the number of people developed by the organizer or operator through the development of people who have been developed by the organizer or operator, and seeks to make illegal profits. The formation of upper and lower line relationships, and the sales performance of the lower line as the basis for calculating and paying the upper line remuneration, profiting from illegal profits.