National Supervision Policy on Chain Sales

When pyramid selling was introduced into China in the early 1990s, the state adopted the attitude of "letting it develop and wait and see", lacking supervision and paying a heavy price. Drawing a painful lesson from pyramid selling, the state first made clear the basic policy of "strict management and control of development" when introducing chain selling, so that chain selling was under the control of the state from the beginning.

The national supervision of chain sales mainly depends on the experimental district government.

1. First, control the number and composition of personnel through the information industry department. Anyone engaged in chain sales must enter the group communication network, and must use a real ID card to go through the network access procedures, so that the country can clearly understand how many people are in this industry, the city where these people are issued in Guangxi, where they come from and what kind of identity they are.

2. The second is to grasp the flow of funds through banks and put forward guidance on supervision in key areas according to the flow of funds. Third, tax management is carried out through the tax department to ensure that industry personnel operate according to law and pay taxes according to regulations. Fourth, through the inspection and supervision of the industrial and commercial and public security departments, we will clean up the fake and shoddy products, punish violations of law and discipline, maintain social order, and create a good experimental environment.

The state's regulation of chain sales is mainly in the macro sense, aiming at controlling the development speed and scale of a regional industry. If the industry develops too fast and dealers at all levels "copy" is not in place, it is inevitable that such problems will occur. If there are too many sales systems in a region and the scale is too large, it will cause too much pressure on housing, transportation, prices and many other aspects of a region. Macro-control is divided into national overall control and local government regional control, and regional control is divided into control in the experimental area and control outside the planning area (mainly in areas where capital outflows are concentrated). The principle of regulation and control is to achieve the goal of "effective protection and moderate development" under the guidance of the basic policies of the state on chain operation, unified deployment, mutual cooperation, supporting the superior and punishing the inferior, and centralized rectification. According to the actual needs and the normal law of industry development, the regulation time is generally arranged at the peak of industry development.

The contents of supervision include:

(1) Negative publicity, speed control, making the industry pay more attention to quality in its development.

(2) to remind and warn the self-discipline work, so that the industry will not affect the social order and local customs in its operation.

(3) crack down on illegal activities such as fake chains and illegal pyramid schemes. For example, in 2003, Hexin was investigated for illegal pyramid selling in the name of anti-counterfeiting chain in western Guangxi.

④ Strengthen tax administration to prevent tax evasion.

⑤ Adjust prices to reduce the operating costs of operators.

The ways and means of regulation mainly include distributing leaflets, hanging slogans, radio publicity, TV reports, on-site cleaning and so on. The use of these methods is determined by the supervision needed at that time. Some negative publicity is not only carried out in the experimental area of chain sales, but also in other provinces and cities or nationwide.

We must correctly understand the state supervision. Some people think that the national policy is self-contradictory, "secretly supporting and superficially opposing", which is unscientific. In fact, the state's support, protection and regulation are consistent, and they are two measures taken to achieve a goal. We can't just regard the state's allocation of 27.3 billion yuan to Guangxi for infrastructure construction in the experimental area, the addition of bank outlets, the opening of special communication networks, and the increase of intercity trains among cities in Guangxi as government support, but the necessary regulation as containment. Some people who have no knowledge and lack the ability of analysis and judgment, seeing the state's regulatory measures, mistakenly think that the state will take it as the target of attack, so they dare not patronize this industry, or dare not seize this opportunity. This is what the state's regulation wants to achieve. From the very beginning, the country put chain sales in Guangdong and Guangxi with a clear purpose, which can be said to have been carefully demonstrated. In the past, Guangdong and Guangxi were the hardest hit areas of pyramid schemes, and the local government would effectively supervise them through self-study. At the same time, the negative effects of pyramid schemes will make them grow up healthily under the protective film of pyramid schemes. However, after this model runs for a certain period of time, when its development speed is difficult to control, the state's regulation becomes extremely important. Only by controlling the experiment within a certain range and maintaining the stable, orderly and healthy development of the industry can we achieve the purpose of effective protection and make the success of employees possible.

It is a common practice all over the world to regulate commerce and guide consumption by macro-control of law, economy and administration, and to praise and criticize with strong public opinion and consumer self-protection. Facts have proved that under the support, supervision and regulation of the state and governments at all levels, chain sales have thrived in the "experimental field", bringing up a group of modern entrepreneurs and tens of thousands of millionaires, and making contributions to the country's economic development and social progress. We hope that the state will further strengthen the supervision and regulation of chain sales, eliminate all unfavorable factors and create a better experimental environment, so that chain sales will be displayed in front of Chinese people with vigorous vitality in the near future, driving the development of direct sales in China and the overall take-off of the national economy.

legal ground

Notice of the General Office of the State Council on Forwarding Several Opinions of the State Economic and Trade Commission of the State Council Economic Restructuring Office on Promoting the Development of Chain Operation

Chain operation has become the most dynamic operation mode of commodity circulation industry, which is widely used in China's retail, catering and other service industries. However, due to the short development time, the overall level of chain operation in China is still low at this stage, which is characterized by small scale and low standardization. In order to adapt to the more intense market competition after China's entry into WTO, continuously improve the degree of organization and modernization of the circulation industry, guide consumption and standardize the market economic order, we must take practical and effective measures to promote the development of chain operation.