First, the characteristics of pyramid selling
MLM behavior has the following three characteristics: first, paying or paying a high entry fee in disguise, that is, after paying the entry fee or buying goods at a high price, you can get the "qualification" of accrual and development; The second is to develop offline directly or indirectly, that is, to join people and form a hierarchy in a certain order; 3. On-line accrues remuneration from the sales performance directly or indirectly developed by off-line, or accrues remuneration or rebate according to the number of personnel directly or indirectly developed. The essence of pyramid selling is to defraud others to buy worthless goods or invest in fictitious projects through fictitious facts and high profits, and the so-called rebates obtained by each level of personnel come from the entry fee or commodity purchase fee paid offline.
Second, the harm of pyramid selling
1, seriously disrupting the market economic order.
MLM involves a wide range, a large number of people and a large amount of funds, and some of them are accompanied by a large number of illegal acts such as illegal fund-raising, manufacturing and selling fake and shoddy goods, infringing on consumers' rights and interests, deceiving a large number of social human resources, absorbing a large number of social funds, and undermining the healthy and harmonious development of the market economy.
2. Disturbing public order and seriously affecting the normal life order of the people and the safety of life and property.
The illegal activities of pyramid selling have a strong secondary nature, which has led to a large number of criminal cases and cases that disturb social order. Couples turn against each other, fathers and sons turn against each other, even families break up and people die from time to time, which has caused great harm to many families and shaken the foundation of social stability.
3, endangering national security and political stability.
Most of the people cheated to participate in pyramid schemes are urban retired, laid-off or unemployed people, farmers and so on. The situation that students and ethnic minorities are cheated to participate in pyramid schemes has become increasingly prominent. MLM organizers have brainwashed participants many times, inciting participants to obstruct and confront law enforcement departments, and from time to time besieging and injuring industrial and commercial, public security law enforcement personnel, with increasingly fierce opposition and constantly triggering mass incidents.