1. The concept and form of pyramid selling:

MLM means that a pyramid selling organization sells or provides services through multi-level (MLM), independent pyramid schemes. Each pyramid seller in addition to the goods In addition to selling to earn profits, you can also introduce and train others as new MLMs, and establish a new sales network to sell the company's goods. While the company earns more profits, each MLM is also in its own sales network. Get the corresponding difference.

MLM is popular all over the world. MLM companies therefore obtain the profit margin from a large number of goods, but it is not a commission. It is precisely because of the huge commercial profits of MLM that some unscrupulous businessmen use MLM methods to carry out illegal MLM, and evolve legitimate MLM into illegal forms such as "online chains" to amass wealth and defraud the public in disguise, thus causing illegal MLM sellers to pursue property. core types of crime. Almost all Chinese people think that MLM is a trick of scammers, at least this is the conclusion that can be drawn from the media.

The three manifestations of MLM are MLM behavior that accrues remuneration based on the number of developed downlines (i.e., "pulling people"), and accrues remuneration based on the sales performance of the developed downlines. MLM behavior (i.e., "team compensation"), as well as MLM behavior of defrauding entry fees.

2. Why MLM is illegal:

Myramid selling and disguised MLM not only seriously disrupt the normal economic order of society, but also seriously endanger social stability and affect the business integrity system and social ethics. Moral systems also wreak havoc.

(1) Disturbing the market economic order and infringing on multiple legal objects. Illegal activities of pyramid schemes and disguised pyramid schemes are often accompanied by a large number of illegal activities such as tax evasion, counterfeit manufacturing and selling, smuggling, illegal fund-raising, illegal trading of foreign exchange, etc. They not only violate national regulations prohibiting pyramid schemes and disguised pyramid schemes, but also violate taxation and consumer protection , market order management, finance, foreign exchange management and other legal provisions.

(2) Cause harm to participants and their families. MLM and disguised pyramid schemes not only cause financial losses to participants, but also cause huge harm to their families.

(3) Cause criminal crimes and bring harm to social stability. MLM has caused the vast majority of participants to lose all their money. Some people live in other places, live miserable lives, and even commit suicide by jumping off buildings. Some people also participate in illegal activities such as theft, robbery, armed fighting, rape, prostitution, and gathering to make trouble, which puts people's lives and property safety at risk. causing serious damage to social stability.

(4) Cause huge damage to social morality and integrity system. Since most of the targets of MLM personnel are relatives, friends, classmates, fellow villagers, and comrades-in-arms, their unscrupulous deceptive methods have led to a serious decline in trust among people, causing conflicts between relatives and friends, fathers and sons, and even families being broken up.

3. What to do if you encounter a pyramid scheme

If you have already entered a pyramid scheme, find a way to exit as soon as possible, otherwise it will be very difficult to quit in the future

Go to the police station to report the crime immediately.

Use the power of the police