Does the longrich water cup scam really have that much effect?

According to the prohibition of pyramid selling, as long as it has three characteristics, the first one is to obtain the qualification to join by paying the membership fee or subscribing for goods in disguise. The second feature is to form the relationship between downline and downline by developing downline, forming a hierarchical relationship. The third feature is to obtain sales performance and make rebates by directly or indirectly developing the number of personnel. With these three characteristics, it is suspected of pyramid selling, which is not allowed by law. Longrich's model certainly has this feature.