Whether it belongs to pyramid scheme or not should be analyzed according to the specific operation mode. If you suspect pyramid schemes, you can report them to the local public security organ or the industrial and commercial bureau.

Prohibition of MLM regulations

Article 2 The term "pyramid selling" as mentioned in these Regulations refers to the act that the organizer or business developer calculates and pays the remuneration of the developed personnel on the basis of the number of personnel directly or indirectly developed by the organizer or business developer, or requires the developed personnel to obtain the qualification to join on the condition of paying a certain fee, so as to seek illegal interests, disrupt economic order and affect social stability.

Article 3 The local people's governments at or above the county level shall strengthen their leadership in investigating pyramid schemes, and support and urge all relevant departments to perform their duties of supervision and management according to law.

The local people's governments at or above the county level shall, according to the needs, establish a coordination mechanism for investigating and handling pyramid schemes, and coordinate and solve major problems in investigating and handling pyramid schemes in a timely manner.

Article 4 The administrative department for industry and commerce and the public security organ shall, in accordance with the provisions of these Regulations, investigate and deal with pyramid schemes within their respective functions and duties.