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Is Shenzhen Dekaixiang Trading Co., Ltd. a fraudulent company such as a pyramid scheme?
The "Regulations on Prohibition of Pyramid Selling" stipulates that pyramid selling refers to the organizer or operator developing personnel by calculating and paying remuneration to the developed personnel based on the number of personnel or sales performance directly or indirectly developed, or Behaviors that require people to be developed to obtain membership qualifications on the condition of paying a certain fee to seek illegal benefits, disrupt economic order, and affect social stability. On April 21, 1998, the Chinese government announced a complete ban on pyramid schemes ("Notice on Prohibition of MLM Business Activities").
In defining MLM, it is important to see whether its bonus system has a pyramid distribution pattern, rather than just being limited to the quality and type of products. If you have the above characteristics, it is,
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