1.MLM refers to the behavior of organizers or operators to develop personnel, calculate and pay remuneration to the developed personnel based on the number of personnel directly or indirectly developed by them, or require the developed personnel to obtain the qualification to join on the condition of paying a certain fee, thus disrupting the economic order and affecting social stability.
Two, the following acts belong to pyramid schemes:
(1) The organizer or operator, through the development of personnel, requires the developed personnel to develop other personnel to join, and calculates and pays remuneration (including material rewards and other economic benefits, the same below) to the developed personnel based on the number of personnel directly or indirectly developed, so as to seek illegal benefits;
(2) The organizer or business operator, through the development personnel, requires the developed personnel to pay the fees or pay the fees in disguised form by subscribing for commodities, etc. , so as to obtain the qualification to join or develop other personnel to join and seek illegal interests;
(3) The organizer or business operator requires the developed personnel to develop other personnel to join, thus forming an online relationship, and calculating and paying online rewards according to the sales performance of offline personnel to seek illegal benefits.
Any unit or individual has the right to report pyramid selling activities to the administrative department for industry and commerce and the public security organ. After receiving the report, the administrative department for industry and commerce and the public security organ shall immediately investigate and verify it, investigate and deal with it according to law, and keep the informant confidential; If the investigation is true, the whistleblower shall be rewarded in accordance with the relevant provisions of the state.