Is Tianyi Travel Company legal? Is it a pyramid scheme?

to judge whether it is pyramid selling, we need to analyze the legal connotation of this behavior from a legal perspective. If the following conditions are met, it is pyramid selling.

According to the Regulations on Prohibiting MLM:

Article 2, MLM refers to the behavior of organizers or business operators to develop personnel, to seek illegal interests, disrupt economic order and affect social stability by calculating and paying remuneration to the developed personnel based on the number of personnel directly or indirectly developed by them or by asking the developed personnel to obtain the qualification to join on the condition of paying a certain fee.

Article 7

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 that have been directly or indirectly developed, and seeks 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.

In the Regulations on Prohibiting MLM, the concept of hierarchical relationship is repeatedly mentioned. It is only a phenomenon in many pyramid schemes that hierarchical relationship is formed according to certain laws, and it is only possible to be suspected of pyramid schemes if it is related to illegal possession of other people's property.