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State supervision and regulation of chain sales policy
When pyramid schemes were introduced into China in the early nineties, the state paid a heavy price for its lack of supervision due to its attitude of "letting them develop and waiting to see what happens". Learning from the painful lessons of pyramid schemes, the state introduced chain sales, first of all, clear "strict management, control the development of" the basic policy, so that chain sales from the beginning of the state under the control of the control.

The state's supervision of chain sales relies mainly on the government of the test area to implement.

1. First, the number and composition of personnel is controlled through the information industry department. All personnel engaged in chain sales are required to enter the group communication network, for access to the network must use my real identity card, so that the state of this industry **** how many people, these people enacted in those cities in Guangxi, each person from what place, what kind of identity they are and so on to understand the situation clearly.

2. The second is through the bank to grasp the flow of funds, and based on the flow of funds to the key areas of the regulation of the guiding opinions. Third, through the tax department for tax management, to ensure that industry personnel to operate in accordance with the law, according to the rules of taxation. Fourth, through the industry and commerce, public security departments to inspect and supervise, clean up counterfeiting, penalize violations of law and discipline, maintain social security, and create a good experimental environment.

The state's regulation of chain sales is mainly in a macro sense, and is aimed at controlling the speed of development of the industry and its scale in a region. If the industry develops too fast, dealers at all levels "copy" is not in place, it is inevitable that this and that problem. If too many sales systems in a region, the scale is too large, it will be too much pressure on a region's housing, transportation, prices and many other aspects. Macro-control is divided into the national overall control and local government regional control, regional control is divided into the control of the test area and the control of the plan outside the area (mainly capital outflow is more concentrated areas) control. The principle of regulation, is under the guidance of the state on the basic policy of chain sales, unified deployment, mutual cooperation, to help the best and punish the worst, focus on remediation, so as to achieve "effective protection, moderate development" of the purpose. Regulate the time from the actual need, based on the normal law of industry development, generally arranged in the peak period of industry development.

The content of the regulation includes:

①The reverse propaganda, control the speed, so that the industry in the development of more quality.

②Reminders and warnings of self-regulation work so that the industry does not affect the social order and local customs in its operation.

③Combating counterfeit chain, illegal marketing and other illegal activities. For example, in 2003, the West Gui region in the regulation of the investigation and punishment of Qin Yongjun, Xin Juntao, headed by the name of the chain of fake illegal marketing.

④Strengthen tax management to prevent tax evasion.

⑤Regulate prices and reduce operators' operating costs.

The ways and means of regulation mainly include the issuance of leaflets, hanging slogans, radio propaganda, television reports and on-site cleanup. The use of these ways and means, based on the required regulatory efforts at the time to decide. Some of the reverse propaganda, not only in the pilot areas of chain sales, sometimes in other provinces and cities or nationwide.

We must have a correct understanding of the state's regulation. Some people think that the state's policy is self-contradictory, "secretly supportive, ostensibly opposed", this view is unscientific. In fact, the state's support for the protection and regulation and control is consistent, is to achieve a purpose face to take the two measures, we can not just put the country to Guangxi allocated 27.3 billion for the test area infrastructure construction, additional bank outlets, the opening of a specialized communications network, in Guangxi between the cities to increase intercity trains and so on as the government's support, and the necessary regulation is seen as a stranglehold. Some do not have insight, lack of analytical judgment ability to see the state's regulatory initiatives, mistakenly believe that the country will be the object of the fight, and thus do not dare to come to investigate the industry, or to come to also dare not seize this opportunity, which is under the state regulation to achieve the effect. The country from the beginning of the chain of sales in the two belts, there is a clear purpose, can be said to have been seriously argued. The two broad belts used to be the hardest hit by the distribution, the local government will self-education and effective supervision, while the negative impact of the distribution, will make it in the distribution of the protective film under the health of the success. However, after this model runs for a certain period of time, the speed of its development is difficult to control itself when the state's regulation is exceptionally important. Only by controlling the experiment within a certain range, so that the industry to maintain a steady, orderly and healthy development, in order to achieve the purpose of effective protection, so that the success of the practitioners possible.

Legal, economic and administrative macro-control to regulate business and guide consumption, with strong public opinion and consumer self-protection added to the praise and criticism, is a common practice in countries around the world. Facts have proved that in the country and all levels of government support, supervision and control, chain sales in the "experimental field" in the growth, creating a number of modern entrepreneurs and tens of thousands of millionaires, for the country's economic development and social progress has contributed. We hope that the state to further strengthen the supervision and control of chain sales, remove all unfavorable factors, to create a better experimental environment, so that the chain of sales in the near future with vigorous vitality in front of the country, driving the development of China's direct sales and the overall takeoff of the national economy.

Legal basis

"The General Office of the State Council forwarded to the State Council Reform Office of the State Economic and Trade Commission on the promotion of the development of chain management of a number of opinions on the notice"

Chain has become the most dynamic mode of operation of today's commodities distribution industry, is currently in China's retail industry, catering and other service industries in general application. However, due to the short development time, the overall level of chain management in China at this stage is still relatively low, highlighted by the small size of enterprises, the degree of standardization is not high. In order to adapt to China's accession to the WTO after the more intense market competition, and constantly improve the degree of organization and modernization of the circulation industry, to guide consumption and regulate the market economic order, we must take practical and effective measures to promote the development of chain management.