Popularize the knowledge about pyramid selling, and hope more people can understand the essence and harm of pyramid selling.
At first, pyramid selling was manifested as the behavior of the organizers engaged in pyramid selling under the guise of "joining", "online sales" and "marketing", and gradually evolved into the commercial fraud of borrowing pyramid selling organizational system and payment methods, not selling goods or engaging in fund-raising fraud under the guise of selling goods and providing services. Its essence is an organized fraud activity aimed at illegally possessing other people's property.
Although various disguised pyramid schemes have different names, their behaviors are the same: 1. Participants are eligible to join or introduce others to join by paying "headcount fee" or "qualification fee" in the form of subscribing goods (including services); 2. Introduce others to participate in the development of offline personnel, so as to establish an organizational system with the redistribution of wealth within the upper and lower levels; 3. The organizer pays the previous participants with part of the expenses paid by the participants to maintain the operation; The income of participants is determined by the order of joining and the number of development personnel.
Six characteristics of pyramid selling
1, well-organized, secretive: MLM generally takes the form of deceiving people to participate in different places, and is well-organized. Generally, people who go up and down the line are contacted separately, and the organizers are remotely controlled.
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.
What are the main hazards of pyramid selling?
MLM and disguised pyramid selling not only seriously disrupt the normal social and economic order, seriously endanger social stability, but also cause great damage to the business integrity system and social moral system.
(1) disturbs the order of market economy and infringes on many legal objects. The illegal activities of pyramid selling and disguised pyramid selling are often accompanied by a large number of illegal acts, such as tax evasion, counterfeiting, smuggling, illegal fund-raising and illegal trading of foreign exchange. It not only violates the provisions of the state prohibiting pyramid selling and disguised pyramid selling, but also violates many legal provisions such as taxation, consumer rights protection, market order management, finance, foreign exchange management and so on.
(2) Damage to participants and their families. MLM and disguised pyramid schemes not only cause economic losses to participants, but also cause great harm to their families.
(3) Initiating a criminal offence, which brings harm to social stability. MLM caused most participants to lose blood. Some people live in different places, lead miserable lives and even commit suicide by jumping off a building. Some people participate in theft, robbery, fighting, rape, prostitution, gathering people to make trouble and other illegal acts, which have seriously infringed on the safety of people's lives and property and social stability.
(4) It has caused great damage to social morality and credit system. Because the development targets of MLM personnel are mostly relatives, friends, classmates, fellow villagers and comrades-in-arms, their unscrupulous fraud means seriously reduce the trust between people, causing relatives and friends to turn against each other and father and son to turn against each other.