What is MLM? Why do many people say that silk cloth is a pyramid scheme?

MLM refers to the illegal behavior that organizers and developers calculate and pay remuneration to the developed personnel on the basis of the number or performance of the directly or indirectly developed personnel, or require 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, which is to distribute the money of latecomers to the income of pioneers.

New pyramid scheme: no restrictions on personal freedom, no ID cards and mobile phones, no group classes. But under the banner of capital operation, attracting people to cheat money, using luxury cars, wearing gold and silver, etc. Use money to attract your relatives and friends, and finally let you lose everything.

1April 2, 9981day, the government of China announced a total ban on pyramid selling. Public security organs throughout the country adhere to the "zero tolerance" attitude towards pyramid schemes, continue to focus on key cases, key areas and key areas, keep a close eye on new means, new trends and new trends of pyramid schemes, and constantly crack down on pyramid schemes.

2065438+In August 2007, the Ministry of Education and the Ministry of Public Security issued a notice demanding that pyramid schemes be severely cracked down and banned according to law. The notice stressed that all kinds of pyramid schemes to trick job seekers into joining in the name of "recruitment" and "job introduction" should be resolutely eliminated.

Extended data:

laws and regulations

The MLM Prohibition Ordinance was adopted at the 10 1 executive meeting in the State Council on August 6, 2005, and came into force on June 6, 2005.

Do not lease the house to pyramid sellers: legally speaking, Article 26 of the Regulations on Prohibiting Pyramid Selling, which came into effect on June 1 1 2005, stipulates that those who provide business premises, training places, sources, storage, warehousing and other conditions for pyramid selling activities shall be ordered by the administrative department for industry and commerce to stop the illegal act, confiscate the illegal income and impose a fine of not less than 500,000 yuan but not more than 500,000 yuan.

Some landlords may not know that tenants are pyramid schemes at first, but the lack of supervision objectively encourages pyramid schemes. Whether it is intentional or negligent, from the legislative spirit, it is necessary to bear corresponding responsibilities, but the punishment will be different according to the specific circumstances. If the owner disagrees with the punishment result, he can appeal through administrative reconsideration and other procedures. [6]

On February 28th, 2009, in order to more effectively crack down on the illegal and criminal activities of pyramid selling, the Criminal Law Amendment (VII) adopted by the Seventh Session of the 11th the National People's Congress Standing Committee (NPCSC) added the crime of organizing and leading pyramid selling, and added one article after Article 224 of the Criminal Law as one of Article 224: "Whoever organizes and leads in the name of selling goods or providing services, requires participants to pay fees or buy goods and services, and is qualified to join,

Affecting social stability In judicial practice, such cases are investigated for criminal responsibility according to the different situations of pyramid schemes and the crimes of illegal business operation, fraud and fund-raising fraud, and there is no special provision.

Crime of organizing and leading pyramid schemes: illegal and criminal activities of organizing pyramid schemes by "attracting people" and "collecting membership fees" occur from time to time, which seriously disrupts social order and affects social stability. The Legislative Affairs Office of the State Council, the Ministry of Public Security, the State Administration for Industry and Commerce and other departments have proposed that in order to be more conducive to cracking down on the crime of organizing pyramid schemes, special provisions should be made in the criminal law on the crime of organizing and leading pyramid schemes.

References:

MLM- Baidu encyclopedia