Is Chengdu Yuanzhongyuan MLM?

1. It is impossible to determine whether it belongs to the category of pyramid selling simply by the above description. Pyramid selling refers to the behavior that organizers or operators develop personnel to seek illegal benefits, disrupt economic order and affect social stability by calculating and paying remuneration to the developed personnel based on their direct or indirect number of personnel or sales performance, or requiring the developed personnel to obtain the qualification to join on the condition of paying a certain fee.

2. According to the provisions of Article 7 of the Regulations on Prohibiting MLM, the following acts belong to pyramid schemes:

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

(2) the organizer or business operator, through the development of personnel, demands the developed personnel to pay fees or pays 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 benefits;

(3) The organizer or business operator, through the development of personnel, requests the developed personnel to develop other personnel to join, thus forming an up-and-down relationship, and calculating and paying the online remuneration based on the sales performance of the offline, so as to seek illegal benefits.