whether it is pyramid selling or not should be judged according to its specific operation mode.

MLM refers to the behavior of organizers or operators to develop personnel, to seek illegal benefits by calculating and paying remuneration to the developed personnel based on the number of personnel or sales performance directly or indirectly developed by them, or to require the developed personnel to obtain the qualification to join on the condition of paying a certain fee, which disrupts the economic order and affects social stability.

MLM can be simply summarized as follows:

1. Entry fee is required.

2. Need to develop downline. It is necessary to constantly find collaborators and induce others to double their income under the guise of forming a team.

3, according to the number of people below and the business performance of these people, decide how much return you have.

the State Council

Article 7 of the Regulations on the Prohibition of MLM

The following acts belong to pyramid schemes:

(1) The organizer or the operator, through the development of personnel, asks 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 who have developed directly or indirectly, and seeks illegal benefits;

(2) the organizer or business operator, through the development of personnel, demands the developed personnel to pay fees or pays 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 benefits;

(3) The organizer or business operator, through the development of personnel, requests the developed personnel to develop other personnel to join, thus forming an up-and-down relationship, and calculating and paying the online remuneration based on the sales performance of the offline, so as to seek illegal benefits.