1. According to Article 2 of the MLM Prohibition Ordinance. MLM refers to the behavior that the organizer or operator develops personnel, calculates and pays remuneration to the developed personnel based on the number of personnel directly or indirectly developed by them, or requires the developed personnel to obtain the qualification to join on the condition of paying a certain fee, so as to seek illegal interests, disrupt economic order and affect social stability.
2. Article 7 The following acts belong to pyramid selling: (1) Organizers or business operators, through the development of personnel, require the developed personnel to join other personnel to directly or indirectly develop the developed personnel.