Was the speech at Chenming Hotel yesterday a pyramid scheme?

Generally speaking, pyramid selling refers to a model, and a single speech cannot be regarded as pyramid selling.

Judging whether it belongs to pyramid selling depends on whether its behavior conforms to the relevant characteristics of pyramid selling.

1.MLM refers to the organizer or operator's development personnel who calculate and pay remuneration to the developed personnel on the basis of the number of directly or indirectly developed personnel or sales performance, or ask the developed personnel to obtain the qualification to join on the condition of paying a certain fee, so as to obtain benefits.

Second, the basic characteristics

1, the price of MLM goods seriously deviates from the actual value of the goods themselves, some MLM goods have no use value and value at all, and the service items are purely fictitious;

2. The income obtained by participants is not from the reasonable profit of selling products or services, but from the fees paid by others when they join.

Third, to judge whether it belongs to pyramid selling, we need to analyze the legal connotation of this behavior from a legal perspective. Those who meet the following conditions belong to pyramid schemes.

(1) The organizer or operator, through the development of personnel, requires the developed personnel to develop other personnel to join, and calculates and pays remuneration (including material rewards and other economic benefits, the same below) to the developed personnel based on the number of personnel directly or indirectly developed, so as to seek illegal benefits;

(2) The organizer or business operator, through the development personnel, requires the developed personnel to pay the fees or pay the fees in disguised form by subscribing for commodities, etc. , so as to obtain the qualification to join or develop other personnel to join and seek illegal interests;

(3) The organizer or business operator requires the developed personnel to develop other personnel to join, thus forming an online relationship, and calculating and paying online rewards according to the sales performance of offline personnel to seek illegal benefits.

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.