Legal basis: Article 224 of the Criminal Law of People's Republic of China (PRC) organizes and leads pyramid selling activities in the name of selling goods and providing services, which require participants to pay fees or purchase goods and services to obtain membership, form hierarchies in a certain order, and directly or indirectly take the number of developers as the basis for reward or rebate. Whoever lures or coerces participants to continue to develop others to participate, defrauds property and disrupts economic and social order shall be sentenced to fixed-term imprisonment of not more than five years. If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and fined.