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Is Mesilan a pyramid scheme?
Not sure. To determine whether it is a pyramid scheme, it must be analyzed based on its specific operation and operating model.
"Regulations on Prohibition of Pyramid Selling"
Article 2 The term "pyramid selling" as mentioned in these Regulations refers to the development of persons by organizers or operators, through direct or indirect development of the persons being developed. Calculate and pay remuneration based on the number of employees or sales performance, or require employees 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.
Article 7 stipulates that the following behaviors are pyramid schemes:
(1) The organizer or operator, through the development personnel, requires the development personnel to develop other personnel to join, and has no influence on the development personnel. Calculate and pay remuneration (including material rewards and other economic benefits, the same below) to personnel based on the number of people they directly or indirectly develop on a rolling basis, and seek illegal benefits;
(2) Organizers or operators Through developing personnel, requiring the developed personnel to pay fees or pay fees in disguised form by subscribing for goods, etc., to obtain the qualifications to join or develop other personnel to join, and seek illegal benefits;
(3) Organizers or operators The developer, through developing personnel, requires the developed personnel to develop other personnel to join, form an upline and downline relationship, and calculate and pay upline remuneration based on the sales performance of the downline, and seek illegal benefits.
Extended information:
MLM refers to the organizer developing personnel by calculating and paying remuneration to the developed personnel based on the number or performance of the personnel they have directly or indirectly developed, or requiring It is an illegal act for a person being developed to obtain wealth by paying a certain fee as a condition to obtain membership qualifications. 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.
On April 21, 1998, the Chinese government announced a comprehensive ban on pyramid schemes in the "Notice on Prohibition of MLM Business Activities". Public security agencies across the country adhere to a "zero tolerance" attitude towards illegal and criminal activities of pyramid schemes, and continue to focus on key cases and key cases. Focus on fields 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 pyramid schemes in accordance with the law. The notice emphasized that under the guise of "entrepreneurship and employment", "recruitment" All kinds of pyramid schemes that lure job seekers into joining in the name of "job introduction" must be eradicated resolutely.
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