MLM refers to the behavior that organizers or managers develop personnel, based on their direct or indirect number of personnel or sales performance, calculate and pay remuneration to the developed personnel, or require the developed personnel to obtain the qualification to join on the condition of paying a certain fee, in order to seek illegal interests, disrupt economic order and affect social stability.
If the local administrative department is suspected of harboring, it can continue to report to the higher authorities.
1. Do you need to invest money to buy products and then develop offline? To put it bluntly, it is to develop relatives, friends or other people to buy their company's products, and some even just pay the money, and there is no product at all. When you get a commission from your relatives and friends, your relatives and friends will become your downline and help you get through! This article is the essence of pyramid selling! Once you pay the money, even if you realize that it is a pyramid scheme, you have to go offline to find your roots.
2. Does the company promote any corporate culture concept, high-quality product culture and weekly classes, etc. The form of class can be lectures in normal colleges or shared by students. It can also be to publicize what top activities the company can participate in as long as it is a senior manager or earns millions or tens of millions. To stimulate you, control your thoughts with the desire for money, and tell you that everyone can, just develop three or five friends and you can go offline.
Once brainwashed, you will dream of making big money every day, firmly believe in promoting the goodness of MLM company and consciously and happily promote the products of MLM company.
MLM refers to the way that organizers or managers develop personnel, calculate and pay remuneration to the developed personnel according to the number of directly or indirectly developed personnel or sales performance, or require the developed personnel to obtain the qualification for joining on the condition of paying a certain fee. Its purpose is to seek illegal interests, disrupt economic order and affect social stability.
Article 7 of the MLM Prohibition Ordinance clearly stipulates that 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 operator requires the developed personnel to join other personnel through the development personnel, thus forming an online relationship, and calculating and paying online rewards based on the sales performance of the offline line to seek illegal benefits.
Extended data:
MLM makes the ultimate rights and interests of most consumers and investors unable to be guaranteed. MLM and normal marketing are one by one, to distinguish for everyone.
Consumer behavior and business behavior are vague, and pyramid sellers use some "tricks". What I promoted to you in the early stage was investment and financial management behavior, and later you became a consumer unconsciously; Or promote consumer behavior, and later let you become an investor; Even citing vague concepts such as "consumption capitalization" makes you lost between investment and consumption. This will bring many difficulties to your legal rights protection (note: consumer behavior and investment business behavior are two different legal concepts, and the applicable laws are: Consumer Protection Law and Contract Law).
In the name of selling goods, providing services, investing in projects and other business activities, organizations and leaders require participants to obtain the qualification to join by paying fees or purchasing goods, services and investments.
In the MLM Prohibition Ordinance? In this paper, the concept of hierarchical relationship is repeatedly mentioned, and hierarchical relationship is formed according to certain laws. It is only a phenomenon in many pyramid schemes, and it may be suspected of pyramid schemes only if it is related to illegal possession of other people's property. For example, village-level community stores have five or six grades of goods, all of which are normal sales. Therefore, the object of pyramid selling infringement is complex, and pyramid selling is often accompanied by tax evasion and price gouging. Infringe on multiple social relations and legal objects; The main object element must have two items:
1, fraud (infringement of citizens' property ownership)
2. Disturbing social management order and economic order.
Trick recognition
First of all, there will be no pie in the sky. Be vigilant when describing your career or reward. High returns are bound to have high risks.
Secondly, no matter how the form of MLM changes and develops, its essence is still to pay the entry fee by purchasing shares, develop offline personnel and form a hierarchy, and take the "performance" of offline personnel as the profit basis.
Therefore, to identify pyramid schemes, we need to look at three characteristics:
1, registration fee
Whether it is necessary to subscribe for goods or pay fees to obtain franchise qualifications or develop others' franchise qualifications to seek illegal interests;
Step 2 pull people's heads
Whether it is necessary to develop others to become their own downline, and pay remuneration to the developed personnel based on the number of directly or indirectly rolling development personnel to seek illegal interests;
3. Method of payment
Whether to calculate the remuneration according to the sales performance of direct or indirect development personnel and seek illegal benefits.
If it meets the above characteristics, it may be suspected of pyramid schemes.
Extended source: Baidu Encyclopedia: MLM