Why doesn't the country directly end all pyramid schemes?

The reason why the state does not directly put an end to pyramid schemes is because the state has introduced laws and regulations to restrict pyramid schemes, which is also a means of cracking down severely. You can report pyramid selling to the local administrative department for industry and commerce or the public security organ.

The state has promulgated a series of laws and regulations, such as:

1. Regulations on the prohibition of MLM;

2. Direct selling management regulations;

Article 224 of the Criminal Law of People's Republic of China (PRC) also stipulates the crime of organizing and leading pyramid selling activities.

It is the strongest evidence to crack down on pyramid selling that the state has incorporated the organization and leadership of pyramid selling activities into the criminal law by formulating specific administrative regulations.

Reporting pyramid schemes can be reported 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.

The evidence needed to report pyramid schemes includes the identity information of the organizer; The number of people suspected of organizing and leading pyramid schemes; Hierarchical system constructed in MLM organization; Defrauding evidence such as the amount of property. MLM has two characteristics. One is that the price of pyramid selling goods seriously deviates from the actual value of the goods themselves; Second, the income earned by participants comes not from reasonable profits, but from the fees paid by others when they join.

First of all, there is no doubt about the country's determination to crack down on pyramid schemes. Various publicity slogans also publicize the dangers of pyramid schemes through TV and online media. Laws and regulations such as the MLM Prohibition Ordinance have also been promulgated.

Secondly, we should fundamentally find the reasons from pyramid schemes:

Now, according to the national policy, MLM has come up with countermeasures. They should investigate the criminal responsibility of the organization leaders for more than 30 people in accordance with the provisions of the MLM Prohibition Law, so they should control the number of people within 30, and separate them if they exceed 30, and always keep it below 30.

Moreover, when they cheat the victims of money, they only accept cash without any receipts and invoices. This makes it difficult to obtain evidence. Many times, investigators suffer from lack of evidence. There is only educational criticism for MLM personnel. This has led to rampant pyramid schemes.

In response to TV media reports, they will package pyramid schemes as a cover of state-supported projects and secret government support to deceive victims.

Finally, combating pyramid selling is a long process. When we are guarding against traditional pyramid schemes. We must always be alert to Internet pyramid schemes. Remember not to crooked ways and unrealistically dream of getting rich overnight.

In fact, the means of pyramid selling is not very clever! The reason why the MLM industry can't be hit is mainly to take advantage of people's deep-rooted greed. I always feel that pies will fall from the sky and get rich easily! So the liar is tired and uncomfortable!

legal ground

Criminal law of the people's Republic of China

Article 224

In the name of business activities such as selling goods and providing services, organizations and leaders require participants to obtain membership by paying fees or purchasing goods and services, and form a hierarchy in a certain order, directly or indirectly based on the number of people who have developed, luring or coercing participants to continue to develop pyramid schemes attended by others, defrauding property and disrupting economic and social order, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and fined; If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and fined.