1, the State Council's Regulations on Prohibition of MLM defines "MLM" as: "The MLM mentioned in this Regulation refers to the behavior of organizers or operators to develop personnel, calculate and pay the remuneration of the developed personnel based on the number of directly or indirectly developed personnel or sales performance, or require the developed personnel to obtain the qualification to join on the condition of paying a certain fee, seek illegal interests, disrupt economic order and affect social stability."
2. In the Opinions of the Supreme People's Court, the Supreme People's Procuratorate and the Ministry of Public Security on Several Issues Concerning the Application of Laws in Handling Criminal Cases of Organizing and Leading MLM Activities, the definition of MLM is: "In the name of selling goods, providing services and other business activities, participants are required to obtain the qualification to join by paying fees or purchasing goods and services, and based on the number of development personnel directly or indirectly, a hierarchy is formed in a certain order to induce and intimidate participants to continue to develop pyramid schemes involving others. If there are more than 30 people involved in pyramid schemes within the organization and the level is above the third level, the organizers and leaders shall be investigated for criminal responsibility. "
To sum up briefly, there are three aspects: paying fees, pulling people's heads, and rebates at different levels! Of course, with the progress of society, pyramid schemes and vests are constantly updated, but no matter how they change, they are the same. If you are interested in more anti-fraud information, you can pay attention to my Baijia number "Old Man Prevention", which will continue to update the inside story and reveal pyramid schemes. I hope everyone can be vigilant and stay away from pyramid schemes!