First, pyramid schemes do not constitute a crime, and generally do not go to jail. The crime of organizing and leading pyramid schemes requires organizers and leaders to organize and lead more than 30 pyramid schemes, and the level is above the third level, before the public security organs can file a case for organizing and leading pyramid schemes.

2. Organizing and leading the participants to obtain the qualification of joining in the name of selling commodities and providing services, and forming a hierarchy in a certain order, directly or indirectly taking the number of people who have developed as the reward or rebate basis, inducing and coercing the participants to continue developing pyramid schemes in which others participate, defrauding property and disrupting economic and social order, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and fined; If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and fined.

Three, about the level and quantity of MLM organization.

In the name of selling goods, providing services and other business activities, participants are required to obtain membership by paying fees or purchasing goods and services, and a hierarchy is formed in a certain order. The number of participants is directly or indirectly used as the basis for reward or rebate, which induces and coerces participants to continue to develop others' participation, defraud property and disrupt economic and social order. If the number of people involved in pyramid schemes is more than 30 and the level is above the third level, the organizers and leaders shall be investigated for criminal responsibility. The organization leads multiple MLM organizations, and if the level of a single organization or multiple organizations reaches level 3 or above, the number of people developed by each organization can be calculated together.

Legal basis:

Criminal law of the people's Republic of China

Article 224 Whoever, in the process of signing and performing a contract, defrauds the other party of property for the purpose of illegal possession under any of the following circumstances, if the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also, or shall only, be fined; If the amount is huge or there are other serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than ten years and shall also be fined; If the amount is especially huge or there are other especially serious circumstances, he shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment, and shall also be fined or confiscated:

(1) Signing a contract in the name of a fictitious unit or others;

(2) Mortgaging with forged, altered or invalid bills or other false property rights certificates;

(three) to perform a small contract or part of the contract first, to deceive the other party to continue to sign and perform the contract, and to have no actual performance ability;

(4) After receiving the payment for goods, advance payment or secured property paid by the other party;

(5) defrauding the other party's property by other means.

Article 224-1 Any organization or leader who, in the name of business activities such as selling goods and providing services, requires participants to obtain membership qualification by paying fees or purchasing goods and services, forms a hierarchy in a certain order, directly or indirectly lures or coerces participants to continue to develop pyramid schemes in which others participate, defrauds property and disrupts economic and social order, and is also fined; If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and fined.