How do you know if it is a pyramid scheme?

MLM means that the organizer develops people by calculating and paying rewards to the people being developed based on the number of people or performance they have directly or indirectly developed, or by requiring the people being developed to pay a certain fee. It is an illegal act to obtain wealth through joining qualifications and other means. The essence of MLM is a "Ponzi scheme", that is, using the money of those who come after you to distribute the profits of those who came before you.

New type of MLM: It does not restrict personal freedom, does not collect ID cards and mobile phones, and does not take large classes collectively. Instead, it uses capital operation as a banner to attract people to defraud money, and uses driving luxury cars, wearing gold and silver, etc. Use money to attract, let your relatives and friends join, and finally make you lose all your money.

Extended information:

On April 21, 1998, the Chinese government announced a comprehensive ban on pyramid schemes in the "Notice on Prohibition of MLM Business Activities". "Tolerance" attitude, continue to focus on key cases, key areas, and key areas, keep a close eye on new methods, new trends, and new trends in MLM crimes, and continue to carry out severe crackdowns on MLM illegal and criminal activities.

In August 2017, four departments including the Ministry of Education and the Ministry of Public Security issued a notice calling for severe crackdowns and banning of MLM organizations in accordance with the law. The notice emphasized that under the guise of "entrepreneurship and employment", "recruitment" All kinds of MLM organizations that lure job seekers to join in the name of "introducing jobs" will be eradicated resolutely. The latest judgment was issued by the court on May 2, 2018. The 65 kinds of "MLM coins" involved exceeded 10 billion, and more than 10 million people bought them. In April 2018, Langfang, Beihai, Nanning, Nanjing, Wuhan, Changsha, Nanchang, Guiyang, Hefei, Xi'an, and Guilin were classified as "Key MLM Cities in 2018" by the State Administration for Market Regulation.

Reference material: MLM - Baidu Encyclopedia