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The Regulations on the Prohibition of Pyramid Selling, which came into effect on November 1, stipulate that the following acts are pyramid schemes.

Organizers or operators require the recruited personnel to recruit other personnel to join through the development of personnel, and the number of personnel who are directly or indirectly recruited is counted on the basis of the number of personnel directly or indirectly developed.

Organizers or proprietors obtain qualifications to join or recruit other persons to join by recruiting personnel, requiring the recruited personnel to pay fees, or paying fees in disguised form by subscribing to commodities, and seeking illegal benefits;

Organizers or operators seek illegal benefits by recruiting personnel, requiring the recruited personnel to recruit other personnel to join, forming a relationship between the upper and lower lines, and calculating and paying the upline remuneration on the basis of the sales performance of the lower lines.

Pyramid marketing refers to the behavior of the organizer or operator recruiting personnel to obtain illegal benefits, disrupt economic order, and affect social stability by calculating and paying remuneration to the recruited personnel on the basis of the number of personnel directly or indirectly recruited or their sales performance, or requiring the recruited personnel to pay a certain fee to obtain membership qualifications.

People generally choose to engage in a job to get paid accordingly as a way to make a living, sales is a job, but also a skill, which needs to be perfected through the process of learning, training, practice, and gaining experience. The target of sales is mainly customers.

MLM sales objects are based on themselves, buy the company's products by themselves, and promote this sales method to the downline, the downline is actually mainly to their relatives and friends as the development object, this sales model is harmful to the interests of the salesman, it will not bring any remuneration to the downline salesman, on the contrary, it also caused losses, and in the process of selling to oneself is not able to learn any sales technology experience, only to sell the product to others need skills.

Therefore, this method is not a normal job at all, but a kind of deception that harms others and oneself and seeks huge profits for a few top uplines.

The internal management of pyramid schemes is quasi-militarized management, and a high degree of organization has been achieved, and pyramid scheme personnel violently resist the law or gather crowds to attack state organs, and pyramid scheme personnel have attacked the public security organs one after another.

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