Pyramid schemes are a cancer that endangers society, disrupts normal economic order, and seriously endangers social security and stability. After the Spring Festival in 2024, a large number of migrant workers and students from various colleges and universities will return to work and school one after another, with high mobility and concentrated mass consumption. Criminals often choose new concepts or new marketing methods at this time, under the guise of "e-commerce, consumption rebates, capital operation, equity investment, online part-time jobs, charitable assistance, love and mutual assistance, consumption and pension", etc., to lure the masses to participate in pyramid marketing activities, and ask the broad masses of the people to raise their awareness of law-abiding and risk-abiding, do not believe in the inducement of others, refuse high returns, stay away from pyramid schemes, and avoid property losses.
What is MLM?
According to the relevant laws and regulations prohibiting pyramid selling, no matter how a pyramid scheme organization changes its methods to disguise itself, as long as it has the following characteristics, it can be judged to be suspected of pyramid selling:
The first is to pay or disguise the entry fee, that is, to pay the money to join before you can get the "qualification" of accruing remuneration and developing downline;
the second is to directly or indirectly develop the downline, that is, to pull people to join, and form a hierarchy in a certain order;
The third is that the upline shall deduct remuneration from the sales performance of the downline directly or indirectly developed, or the remuneration or rebate shall be calculated based on the number of personnel directly or indirectly developed.
To put it simply, as long as there is "paying the entrance fee", "pulling heads", and "forming a hierarchical team to calculate", it can be identified as a suspected pyramid scheme.
Sunshine Direct Selling Company Reminder:
1. Strengthen risk awareness. Don't believe in pie in the sky, don't trust others to induce, and refuse high returns.
2. Be wary of the idiomatic terms used in pyramid schemes. When you hear or see the usual words of MLM such as "consumption rebates, consumption pension, love and mutual assistance, original stocks, virtual currency, and online direct sales", you should be vigilant and not be deceived by fancy concept hype.
3. Maintain a high degree of vigilance. Once it is found that someone in the name of recruitment, business, etc., asks to pay money to join or develop personnel to join, after the development can be commissioned, promising high income, high returns, etc., we must be highly vigilant.
Fourth, pay attention to the collection of evidence. After discovering that you have been deceived into participating in pyramid marketing activities, you should pay attention to collecting and saving relevant evidence and clues such as remittance vouchers and receipts, names, residences, Internet account passwords of introducers and higher-level upline personnel, and provide them to law enforcement agencies in a timely manner.