A single brand can't determine whether it belongs to the category of pyramid selling. MLM refers to the behavior that the organizer or operator's developer calculates and pays the remuneration to the developed personnel based on the number of personnel or sales performance directly or indirectly developed by the organizer or operator, or requires 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.

To identify pyramid schemes, we need to look at three characteristics:

1, registration fee

Whether it is necessary to subscribe for goods or pay fees to obtain franchise qualifications or develop others' franchise qualifications to seek illegal interests;

Step 2 pull people's heads

Whether it is necessary to develop others to become their own downline, and pay remuneration to the developed personnel based on the number of people directly or indirectly developed, so as to seek illegal interests;

3. Method of payment

Whether to calculate the remuneration according to the sales performance of direct or indirect development personnel and seek illegal benefits.

If it meets the above characteristics, it may be suspected of pyramid schemes. ?

Idiomatic noun

The police remind everyone that the following terms are commonly used in pyramid schemes:

1, "Beibu gulf construction", "capital operation", "1040 project", voluntary chain, private mutual financial management;

2. Consumer rebate, chain sales, joining, profit from click advertising, love and mutual assistance, consumer pension, overseas funds, original stock investment, and electronic currency transactions;

3. Static income, dynamic income, direct promotion award, layer promotion award, touching award, seeing award, leadership award, cultivation award, declaration award, management award and community performance award.

Extended data

The administrative departments for industry and commerce at or above the county level may take the following measures when investigating suspected pyramid schemes:

(a) ordered to stop related activities;

(two) to investigate and understand the relevant information of the organizers, operators and individuals suspected of pyramid schemes;

(three) to enter the business premises suspected of pyramid schemes and training, assembly and other activities, and conduct on-site inspections;

(four) to consult, copy, seal up and detain the relevant contracts, bills, account books and other materials suspected of pyramid schemes;

(five) seizure, seizure of products (commodities), tools, equipment, raw materials and other property suspected of being specially used for pyramid schemes;

(six) to seal up the business premises suspected of pyramid schemes;

(seven) to inquire about the accounts of the organizers or operators suspected of pyramid schemes and the accounting vouchers, account books and statements related to deposits;

(8) If there is evidence to prove that illegal funds are transferred or concealed, it may apply to the judicial organ for freezing.

References:

Baidu Encyclopedia -MLM Regulations and MLM Prohibition-Baidu Encyclopedia