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Will there be MLM companies in large-scale recruitment?
MLM refers to the behavior that organizers or operators develop personnel to seek illegal interests, disrupt economic order and affect social stability by calculating and paying remuneration to the developed personnel based on the number of personnel or sales performance directly or indirectly developed by them, or requiring the developed personnel to obtain the qualification to join on the condition of paying a certain fee.
distinction: the important basis for distinguishing pyramid selling is whether its bonus distribution system has pyramid distribution. Need to pay money to become a so-called investor.
Related laws:
In order to more effectively crack down on pyramid selling illegal and criminal activities, the Criminal Law Amendment (VII) voted by the Seventh Session of the 11th the National People's Congress Standing Committee (NPCSC) on February 28th, 29 added the crime of organizing and leading pyramid selling, which
affected social stability. In judicial practice, this kind of cases are mainly investigated for criminal responsibility according to the different situations of pyramid selling, illegal business operation, fraud and fund-raising fraud, respectively.
Crime of organizing and leading pyramid schemes
Illegal and criminal activities of organizing pyramid schemes by "soliciting people's heads" and charging "entrance 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.
On February 28th, 29, the Seventh Session of the 11th the NPC Standing Committee adopted the Amendment (VII) of the Criminal Law of the People's Republic of China, adding one article after Article 224 of the Criminal Law as one of Article 224: "Organizing and leading the participants to obtain the qualification of joining in the name of selling commodities and providing services, etc.".
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