How do you know if a company is a pyramid scheme or a shell company?

Contrast recognition

MLM makes the ultimate rights and interests of most consumers and investors unable to be guaranteed. MLM and normal marketing are one by one, to distinguish for everyone.

Consumer behavior and business behavior are vague, and pyramid sellers use some "tricks". What I promoted to you in the early stage was investment and financial management behavior, and later you became a consumer unconsciously; Or promote consumer behavior, and later let you become an investor; Even citing vague concepts such as "consumption capitalization" makes you lost between investment and consumption.

This will bring many difficulties to your legal rights protection (note: consumer behavior and investment business behavior are two different legal concepts, and the applicable laws are: Consumer Protection Law and Contract Law).

In the name of selling goods, providing services, investing in projects and other business activities, organizations and leaders require participants to obtain the qualification to join by paying fees or purchasing goods, services and investments.

In the MLM Prohibition Ordinance, the concept of hierarchical relationship has been repeatedly mentioned. The formation of hierarchical relations according to certain laws is only a phenomenon in many pyramid schemes, and it is only possible to be suspected of pyramid schemes if it is related to illegal possession of other people's property.

For example, village-level community stores have five or six grades of goods, all of which are normal sales. Therefore, the object of pyramid selling infringement is complex, and pyramid selling is often accompanied by tax evasion and price gouging. Infringe on multiple social relations and legal objects; The main object element must have two items:

1, fraud (infringement of citizens' property ownership);

2. Disturbing social management order and economic order.

Trick recognition

First of all, there will be no pie in the sky. Be vigilant when describing your career or reward. High returns are bound to have high risks.

Secondly, no matter how the form of MLM changes and develops, its essence is still to pay the entry fee by purchasing shares, develop offline personnel and form a hierarchy, and take the "performance" of offline personnel as the profit basis.

Therefore, to identify pyramid schemes, we need to look at three characteristics:

1, registration fee

Whether it is necessary to subscribe for goods or pay fees to obtain franchise qualifications or develop others' franchise qualifications to seek illegal interests;

Step 2 pull people's heads

Whether it is necessary to develop others to become their own downline, and pay remuneration to the developed personnel based on the number of directly or indirectly rolling development personnel to seek illegal interests;

3. Method of payment

Whether to calculate the remuneration according to the sales performance of direct or indirect development personnel and seek illegal benefits.

If it meets the above characteristics, it may be suspected of pyramid schemes.

Briefcase company-a company with insufficient funds

Literally, it is a company with only a leather bag, two or three people and seven or eight chapters, which means that the company has no real registered capital, just an empty shell.

Shell companies usually have the following characteristics:

1. Never appointed any directors.

2. The official seal, stock certificate and other documents required by law are all ready.

3. Never started a business. Therefore, buyers can use the required documents immediately without worrying about hidden risks.

Extended data

The harm of pyramid selling

The essence of MLM is that it does not create social value by illegally transferring and gathering finance offline, which is the essential difference between MLM and normal marketing. MLM is not an act of the state, nor can it be an act of the state. Although it stimulated the local economy and promoted consumption, its own organizational behavior caused irreparable harm to most participants and violated the normal life and activities of human beings.

MLM idioms

The police remind everyone that the following terms are commonly used in pyramid schemes:

1, "Beibu gulf construction", "capital operation", "1040 project", voluntary chain, private mutual financial management;

2. Consumer rebate, chain sales, joining, profit from click advertising, love and mutual assistance, consumer pension, overseas funds, original stock investment, and electronic currency transactions;

3. Static income, dynamic income, direct promotion award, layer promotion award, touching award, seeing award, leadership award, cultivation award, declaration award, management award and community performance award.

References:

Baidu encyclopedia -MLM? Baidu encyclopedia-leather bag company? Baidu encyclopedia-shell company