Whether it belongs to pyramid scheme or not should be judged according to its specific operation mode.

MLM refers to the behavior that organizers or operators calculate and pay remuneration to the developed personnel based on their direct or indirect number of personnel or sales performance, or require 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.

MLM can be simply summarized as:

1. Registration fee is required.

2. Need to develop downline. It is necessary to constantly find collaborators to induce others to double their income under the guise of forming a team.

3. According to the following number of people and their business performance, decide how much return you have.

4. In fact, to put it bluntly, it is to ask the downline to give money to the online company 1 yuan, and the online company said that it would teach the downline how to earn 50 yuan. As a result, when offline gave online 1 yuan, online told offline to find the same ten idiots to do offline.

the State Council

Prohibition of MLM regulations

Article 7 The following acts belong to pyramid selling:

(1) The organizer or operator, through the development of personnel, requires the developed personnel to develop other personnel to join, and calculates and pays remuneration (including material rewards and other economic benefits, the same below) to the developed personnel based on the number of personnel directly or indirectly developed, so as to seek illegal benefits;

(2) The organizer or business operator, through the development personnel, requires the developed personnel to pay the fees or pay the fees in disguised form by subscribing for commodities, etc. , so as to obtain the qualification to join or develop other personnel to join and seek illegal interests;

(3) The organizer or business operator requires the developed personnel to develop other personnel to join, thus forming an online relationship, and calculating and paying online rewards according to the sales performance of offline personnel to seek illegal benefits.