China New Age Group scam. Is pulling people up and down a pyramid scheme?

It's not pyramid selling, it's direct selling.

As of February 23, 20 19, it was not recognized as pyramid selling by the relevant departments.

First, direct selling, according to the definition of the World Direct Selling Alliance, direct selling refers to the direct sales of goods and services by manufacturers, and the direct sellers bypass the traditional wholesalers or retail channels and directly accept customers' orders. Direct selling refers to the distribution mode in which direct selling enterprises recruit direct sellers, who sell products directly to the final consumers (hereinafter referred to as consumers) outside the fixed business premises.

2065438+2009 1 October 28th, the State Administration of Markets and the Ministry of Commerce held a 91collective interview reminder meeting for direct selling enterprises. On February 2019 14, the Ministry of Commerce held a regular press conference, and the press spokesman announced the recent key work in the business field and answered questions from the live media.

Gao Feng, spokesman of the Ministry of Commerce, said that the Ministry of Commerce has suspended the approval and filing of direct sales. Comprehensively sort out and investigate the situation of direct selling enterprises, and severely crack down on the illegal and illegal business problems found.

Two, MLM refers to the organizers of the development of personnel, through the development of personnel to obtain wealth or on the condition of paying a certain fee to require the development of personnel to obtain the qualification to join the illegal act. The essence of pyramid selling is "Ponzi scheme", that is, the money of the latecomers is distributed to the income of the pioneers.

New pyramid scheme: no restrictions on personal freedom, no ID cards and mobile phones, no group classes. But under the banner of capital operation, attracting people to cheat money, using luxury cars, wearing gold and silver, etc. Use money to attract your relatives and friends, and finally let you lose everything.

Extended data:

1. Identification of MLM features:

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 according to 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.

Second, MLM control identification:

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.

Baidu encyclopedia -MLM

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