What exactly is MLM? What kind of behavior is MLM?

MLM means that the organizer develops people by calculating and paying rewards to the people being developed based on the number of people or performance they have directly or indirectly developed, or by requiring the people being developed to pay a certain fee. It is an illegal act to obtain wealth through joining qualifications and other means. The essence of MLM is a "Ponzi scheme", that is, using the money of those who come after you to distribute the profits of those who came before you.

New type of MLM: It does not restrict personal freedom, does not collect ID cards and mobile phones, and does not take large classes collectively. Instead, it uses capital operation as a banner to attract people to defraud money, and uses driving luxury cars, wearing gold and silver, etc. Use money to attract, let your relatives and friends join, and finally make you lose all your money.

On April 21, 1998, the Chinese government announced a comprehensive ban on pyramid schemes in the "Notice on Prohibition of MLM Business Activities". Public security agencies across the country adhere to a "zero tolerance" attitude towards illegal and criminal activities of pyramid schemes, and continue to focus on key cases and key Focus on fields and key areas, keep a close eye on new methods, new trends, and new trends in MLM crimes, and continue to carry out severe crackdowns on MLM illegal and criminal activities.