According to Article 7 of the MLM Prohibition Ordinance of the State Council, the following acts belong to pyramid selling. Organizers or business operators, through the development of personnel, require the developed personnel to develop other personnel to join, and calculate and pay the remuneration including material rewards and other economic benefits to the developed personnel based on the number of personnel directly or indirectly developed, the same below, and seek illegal benefits.

Organizers or business operators, through the development of personnel, require the developed personnel to pay fees or pay fees in disguised form by subscribing for goods. , and obtain the qualification to join or develop other personnel to join. Seek illegal interests.