How to judge whether a trading company is a pyramid scheme?

To judge pyramid selling, we need to analyze the legal connotation of this behavior from a legal perspective. Those who meet the following conditions belong to pyramid schemes. If it is a normal business activity, it can be opened naturally.

According to the provisions of the MLM Ban:

Rule number two,

MLM refers to the behavior that organizers or operators calculate and pay remuneration to the developed personnel based on their direct or indirect number of personnel or sales performance, or require 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.

Article 7

The following acts belong to pyramid schemes:

(1) The organizer or operator, through the development of personnel, requires 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 directly or indirectly developed, so as to seek illegal benefits;

(2) The organizer or business operator, through the development personnel, requires the developed personnel to pay the fees or pay the 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 interests;

(3) The organizer or business operator requires the developed personnel to develop other personnel to join, thus forming an online relationship, and calculating and paying online rewards according to the sales performance of offline personnel to seek illegal benefits.

Extended data:

The object of pyramid selling infringement is complex, and pyramid selling is often accompanied by tax evasion and price gouging. Infringe on multiple social relations and legal objects; The main object element must have two items:

1, fraud (infringement of citizens' property ownership);

2. Disturbing social management order and economic order.

Don't sell pyramid schemes, you 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 directly or indirectly rolling development personnel 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 transportation ",1040 project, voluntary chain, private mutual financial management;

2. Consumer rebates, chain sales, franchising, profit from clicking advertisements, 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.

References:? Baidu encyclopedia -MLM

China government portal-MLM prohibition