MLM refers to the illegal behavior that organizers develop personnel to obtain wealth by calculating and paying remuneration to the developed personnel based on the number or performance of the personnel directly or indirectly developed by them, or requiring the developed personnel to obtain the qualification to join on the condition of paying a certain fee. The essence of pyramid selling is "Ponzi scheme", that is, the money of the latecomers is distributed to the income of the forerunners.

The new pyramid scheme: it does not restrict personal freedom, does not accept ID cards and mobile phones, and does not go to class collectively. Instead, it uses the banner of capital operation to attract people to cheat money, use luxury cars, wear gold and silver, etc., attract your relatives and friends with money, and finally make you lose your money.

1April 2, 19981day, the government of China announced a total ban on pyramid selling. The public security organs throughout the country insisted on a "zero tolerance" attitude towards pyramid selling illegal and criminal activities, and continued to focus on key cases, key areas and key areas, keeping a close eye on new methods, new trends and new trends of pyramid selling crimes, and constantly cracking down on pyramid selling illegal and criminal activities.