Chapter III Investigation Measures and Procedures
Article 14 The administrative department for industry and commerce at or above the county level may take the following measures when investigating suspected pyramid schemes:
(a) ordered to stop related activities;
(two) to investigate and understand the relevant information of the organizers, operators and individuals suspected of pyramid schemes;
(three) to enter the business premises suspected of pyramid schemes and training, assembly and other activities, and conduct on-site inspections;
(four) to consult, copy, seal up and detain the relevant contracts, bills, account books and other materials suspected of pyramid schemes;
(five) seizure, seizure of products (commodities), tools, equipment, raw materials and other property suspected of being specially used for pyramid schemes;
(six) to seal up the business premises suspected of pyramid schemes;
(seven) to inquire about the accounts of the organizers or operators suspected of pyramid schemes and the accounting vouchers, account books and statements related to deposits;
(8) If there is evidence to prove that illegal funds are transferred or concealed, it may apply to the judicial organ for freezing.
When the administrative department for industry and commerce takes the measures specified in the preceding paragraph, it shall report in writing or orally to the principal responsible person of the administrative department for industry and commerce at or above the county level and obtain approval. If the situation is urgent and it is necessary to take the measures specified in the preceding paragraph on the spot, it shall be reported immediately afterwards and relevant procedures shall be handled; Among them, the implementation of the seizure and detention as stipulated in the preceding paragraph and the measures specified in items (7) and (8) shall be approved in writing by the principal person in charge of the administrative department for industry and commerce at or above the county level in advance.
Fifteenth administrative departments for Industry and commerce to investigate and deal with suspected pyramid schemes, law enforcement personnel shall not be less than two.
Law enforcement officers who have a direct interest with the parties concerned shall withdraw.
Article 16 When investigating suspected pyramid selling activities, law enforcement officers of the administrative department for industry and commerce shall show their certificates to the parties concerned or relevant personnel.
Article 17 When sealing up or detaining, the administrative department for industry and commerce shall deliver the written decision of sealing up or detaining and the list of the property sealed up or detained to the parties on the spot.
In areas with inconvenient transportation, or if it is impossible to seal up or detain the case in time, which may affect the investigation and handling of the case, it may be sealed up and detained first, and a decision on sealing up or detaining shall be submitted within 24 hours and served on the parties concerned.
Article 18 The time limit for sealing up or detaining by the administrative department for industry and commerce shall not exceed 30 days; If the case is complicated, it may be extended by 15 days with the approval of the main person in charge of the administrative department for industry and commerce at or above the county level.
The administrative department for industry and commerce shall properly keep the property that has been sealed up or detained, and shall not use or damage it; If losses are caused, it shall be liable for compensation. Except for losses caused by force majeure.
Article 19 When sealing up or detaining, the administrative department for industry and commerce shall promptly ascertain the facts and make a decision during the sealing up or detaining.
After investigation and verification, it is pyramid selling, and the illegal property that has been sealed up or detained shall be confiscated according to law; After investigation and verification, there is no pyramid scheme, or it is no longer necessary to seal up or detain, and the seizure shall be lifted immediately after the decision is made, and the seized property shall be returned.
If the administrative department for industry and commerce fails to make a decision within the time limit, the seized goods shall be deemed to have been released, and the seized property shall be returned. Refuses to return, the parties may bring an administrative lawsuit to the people's court.
Twentieth industrial and commercial administrative organs and their staff in violation of the provisions of this Ordinance, the use or damage of seized or detained property, resulting in economic losses to the parties, shall be liable for compensation.
Article 21 When the administrative department for industry and commerce investigates suspected pyramid schemes, the parties concerned have the right to make statements and defend themselves.
Article 22 The administrative department for industry and commerce shall make on-the-spot records when investigating suspected pyramid schemes.
The on-site record and the list of seizure and detention shall be signed or sealed by the parties, witnesses and law enforcement officers. If the party concerned is not present or the party concerned or the witness refuses to sign or seal, the law enforcement officer shall indicate it in the on-site record.
Twenty-third for the investigation and handling of pyramid schemes, the administrative department for industry and commerce and the public security organs can publicly issue warnings and tips to the public.
Publicly issuing warnings and tips to the public shall be approved by the principal responsible person of the administrative department for industry and commerce at or above the county level or the principal responsible person of the public security organ.
Chapter IV Legal Liability
Twenty-fourth acts stipulated in Article 7 of these regulations, the organization of pyramid schemes, the administrative department for Industry and Commerce shall confiscate the illegal property, confiscate the illegal income, and impose a fine of 500 thousand yuan to 2 million yuan; If a crime is constituted, criminal responsibility shall be investigated according to law.
Whoever commits the acts specified in Article 7 of these regulations, introduces, lures or coerces others to participate in pyramid schemes, shall be ordered by the administrative department for industry and commerce to stop the illegal acts, confiscate the illegal property and illegal income, and impose a fine of more than 654.38 million yuan and less than 500,000 yuan; If a crime is constituted, criminal responsibility shall be investigated according to law.
Anyone who participates in pyramid schemes in the acts listed in Article 7 of these regulations shall be ordered by the administrative department for industry and commerce to stop the illegal acts and may be fined up to 2000 yuan.
Article 25 When the administrative department for industry and commerce imposes penalties in accordance with the provisions of Article 24 of these regulations, it may, in accordance with the provisions of relevant laws and administrative regulations, order it to suspend business for rectification or revoke its business license.
Article 26 Whoever provides business premises, training places, sources of goods, storage and other conditions for pyramid selling activities stipulated in Article 7 of these regulations shall be ordered by the administrative department for industry and commerce to stop the illegal act, confiscate the illegal income and impose a fine of not less than 50,000 yuan but not more than 500,000 yuan.
Those who provide Internet information services for pyramid selling activities stipulated in Article 7 of these regulations shall be ordered by the administrative department for industry and commerce to stop the illegal acts and notify the relevant departments to be punished in accordance with the Measures for the Administration of Internet Information Services.
Article 27 If a party uses, exchanges, transfers or damages the sealed-up or detained property without authorization, the administrative department for industry and commerce shall order it to stop the illegal act and impose a fine of more than 5% and less than 20% on the passive use, exchange, transfer or damage of the property; Those who refuse to make corrections shall be fined for passive use, exchange, transfer and damage of property value 1 times and less than 3 times.
Article 28 Whoever commits the acts specified in Article 10 of these Regulations or refuses or obstructs the law enforcement officers of the administrative department for industry and commerce to investigate and deal with pyramid schemes according to law, which constitutes a violation of public security administration, shall be punished by the public security organ in accordance with the laws and administrative regulations on public security administration; If a crime is constituted, criminal responsibility shall be investigated according to law.
Article 29 If the administrative department for industry and commerce, public security organs and their staff abuse their powers, neglect their duties, engage in malpractices for selfish ends, fail to investigate pyramid schemes in accordance with the duties and procedures stipulated in these Regulations, or find that pyramid schemes are not investigated, or support, shield or condone pyramid schemes, which constitutes a crime, the directly responsible person in charge and other directly responsible personnel shall be investigated for criminal responsibility according to law; If it does not constitute a crime, it shall be given administrative sanctions according to law.
Chapter V Supplementary Provisions
Thirtieth these Regulations shall come into force as of June 1 2005.