Various pyramid schemes have prevailed for many years and have been repeatedly banned. In recent years, there have been many "variants" with the help of social networks. Recently, Li Wenxing, a Shandong college student, was found drowned in a puddle in Jinghai District of Tianjin. According to the physical evidence such as MLM notes that Li Wenxing carried with him and the description of his family's abnormal behavior before his death, the police analyzed that Li Wenxing was most likely mistaken for MLM organization.

As a college student, how to distinguish between pyramid selling and direct selling?

1, direct selling license

The simplest and rudest judgment basis is: direct sales license. At present, 7 1 direct selling enterprises in China have obtained direct selling licenses, and another 19 direct selling enterprises have applied for direct selling licenses.

2. Product judgment

According to the regulations, direct selling products should meet the national certification, licensing or mandatory standards: cosmetics, health food, cleaning products, health care equipment, small kitchen utensils and so on. Financial investment, tourism and other products are not included in the regulations.

At the same time, direct selling and pyramid selling products have the following differences:

A legal direct selling enterprises do not encourage direct sellers to hoard too many goods, and provide opportunities to join or withdraw from direct selling plans. Quitters can return unused and saleable goods to the company.

And illegal pyramid schemes use "get rich quick" as bait to encourage and even require participants to buy a large number of products for hoarding. And there is no follow-up guarantee.

B direct selling enterprises are oriented to selling products and always put product sales and consumer interests first.

Illegal pyramid selling is usually oriented to selling virtual products and opportunities, and there is no specific product, or the product does not meet the requirements of the Ministry of Commerce for direct selling products.

C in direct selling activities, consumers and direct sellers can return unopened products to direct selling enterprises and their branches, local service outlets or direct sellers selling products with invoices or sales vouchers issued by direct selling enterprises.

In MLM activities, the so-called "products" or the registration fees paid are usually not refunded, and the rights and interests of participants cannot be guaranteed.

3. Pay difference

Legal direct selling companies are based on selling products, and direct sellers give bonuses according to sales; Illegal pyramid schemes are rewarded according to the number of development downlines (heads).