Is Zhengzhou ACF a pyramid scheme? Are they legit?

Whether it is a pyramid scheme or not, you need to analyze the legal connotation of this behavior from a legal perspective. If the following conditions are met, it is a pyramid scheme.

According to the "Regulations on the Prohibition of Pyramid Selling":

Article 2: Pyramid selling refers to the organizer or operator who develops people and directly or indirectly develops the people to be developed. Calculation and payment of remuneration based on quantity or sales performance, or requiring employees to be developed to obtain membership qualifications on the condition of paying a certain fee to seek illegal benefits, disrupt economic order, and affect social stability.

Article 7

The following behaviors are pyramid schemes:

(1) The organizer or operator requires the person being developed to develop other people through developing people To join, calculate and pay remuneration (including material rewards and other economic benefits, the same below) to the development personnel based on the number of direct or indirect rolling development personnel, and seek illegal benefits;

(2) The organizer or operator, through developing personnel, requires the developed personnel to pay fees or pay fees in disguised form by subscribing for goods, etc., to obtain the qualifications to join or develop other personnel to join, and to seek illegal benefits;

(3) The organizer or operator, through development personnel, requires the development personnel to develop other personnel to join, form an upline and downline relationship, and calculate and pay upline remuneration based on the sales performance of the downline, and seek illegal benefits.

In the "Regulations on the Prohibition of Pyramid Selling", the concept of hierarchical relationship is repeatedly mentioned. The hierarchical relationship formed by certain rules is only a phenomenon among many pyramid schemes. It must be combined with the illegal possession of other people's property to be suspected of pyramid scheme.