The Criminal Law Amendment (VII) voted by the Seventh Session of the 11th the National People's Congress Standing Committee (NPCSC) added the crime of organizing and leading pyramid selling activities. Article 224 of the Criminal Law contains this provision. This article clearly stipulates that in addition to the organizers of the company, leaders whose income exceeds 50,000 should also be investigated for criminal responsibility.

Six characteristics of pyramid selling

1, well-organized and secretive: MLM generally takes the form of tricking people into participating in different places, and is well-organized. Generally, the upper and lower line personnel are contacted separately, and the organizer remotely controls them.

2. Murder: Using excuses such as "looking for a job", "doing business in partnership", "traveling abroad" and "meeting with netizens" to trick relatives, friends, fellow villagers, colleagues and classmates into participating in pyramid schemes in different places.

3. Fabricate the myth of getting rich: advocate getting rich quickly and encourage people to join in with a set of fallacies that seem to be scientific and reasonable bonus distribution system.

4. Brainwashing: Through centralized teaching, communication, heart-to-heart, etc., people who have joined the handed down organizations are constantly instilled with the concept of getting rich, so that participants are convinced.

5. High rebate: MLM institutions generally have a seemingly fair and attractive "high rebate plan". With the clamor of MLM personnel, it is easy for people to have the desire to invest and join MLM activities rashly.

6. The prices of props and commodities are inflated: the commodities sold by pyramid schemes are only props, with the purpose of developing personnel and defrauding money. Therefore, the price of commodities sold by pyramid schemes seriously deviates from its value. Many of them are cosmetics, nutrition, health care equipment, clothing and so on. Some of them are "three noes" goods. .