What are the characteristics of illegal pyramid schemes?

The main types of MLM are as follows:

1. "E-commerce" type. MLM organizations and leaders use the banner of "e-commerce" to first register an e-commerce enterprise, and then establish an e-commerce website in this name, in the form of "online shopping", "online marketing", "online direct purchase", "outlet franchise" and other forms Engage in online MLM activities.

2. "Free profit" style. MLM organizations and leaders claim that "you don't have to spend money to consume, you can buy goods for free", "consumption = saving = free", "500 back when you spend over 500", etc. These are highly deceptive and tempting, causing many people to join MLM scams.

3. "Online entrepreneurship" style. MLM organizations and leaders use venture capital as the pretext, and use "home business", "online entrepreneurship", "online investment", "original stock investment" and "fund sale" as bait to seize the desire of some people to succeed and dream of getting rich overnight. Attract people to join, thereby achieving the purpose of developing members for online pyramid schemes.

4. "Free travel" style. Under the banners of "travel direct sales" and "free travel", MLM organizations and leaders use gimmicks such as "free travel" and "making money while traveling" to develop offline through adding mobile phone WeChat friends, attracting people to join and pay fees, and engage in Online marketing.

For the "new variant" of MLM activities, no matter how the MLM organization "changes its face", you only need to look at three characteristics:

1. Whether it is necessary to subscribe for goods or pay fees to qualify for membership. ;

2. Whether it is necessary to develop others to become one's downlines and form a hierarchical network;

3. Whether the remuneration is calculated based on the number or sales performance of direct or indirect development personnel, Bonus, the income received by participants does not come from the reasonable profits obtained from the sale of goods or services, but from the fees paid by others when they join. As long as it meets these three characteristics, it is definitely a pyramid scheme.

What should I do if I mistakenly enter a MLM organization?

If you find that you have mistakenly entered a MLM organization, you should pay attention to collect the specific operation conditions of the MLM activity, such as MLM methods and promotional materials, and save the remittance account number, remittance voucher, payment receipt, and the name of the introducer and key personnel on the line. , residence, phone number, organization website, account password, screenshots of the involved web pages and other relevant clues, and provide them to law enforcement agencies in a timely manner.

If you are deceived into another place, try to escape first while ensuring your own safety or call 110 to request rescue. If a relative or friend is deceived into engaging in MLM in another place, persuade them to leave the MLM organization as soon as possible. And promptly report to the local industrial and commercial and public security organs.