Refers to the number of organizers or managers who develop or sell industries directly or indirectly.
Calculate and pay remuneration based on performance, or require the developed personnel to obtain the qualification of joining on the condition of paying a certain fee.
Illegal interests disrupt economic order and affect social stability. (Notice on Prohibition of MLM Business Activities)
Second, "pyramid selling" in the sense of criminal law:
The crime of organizing and leading pyramid schemes refers to asking participants to pay fees or buy in the name of selling goods and providing services.
Goods, services and other ways to obtain the qualification to join, and form a hierarchy in a certain order, directly or indirectly by the number of development personnel.
Lure and coerce participants to continue to develop others' participation, defraud money, and disrupt the spread of economic and social order, as the basis for remuneration or kickbacks.
Sales activities. (criminal law)