It is a pyramid scheme.
This type of MLM is usually under the guise of offering love, but in fact it is a pyramid scheme.
In fact, it is not difficult to determine whether an organization is a pyramid scheme. The relevant person in charge of the Anti-Monopoly and Anti-Unfair Competition Law Enforcement Bureau of the State Administration for Industry and Commerce once pointed out that according to the relevant laws and regulations prohibiting pyramid schemes, no matter what the pyramid scheme is, Change the method to disguise yourself, and you can be suspected of a pyramid scheme as long as you have three points at the same time:
The first is to pay or pay in disguise the entry fee, that is, only after paying the money to join can you get the "qualifications to accrue rewards and develop downlines" ”;
The second is to develop downlines directly or indirectly, that is, to attract people to join and form hierarchies in a certain order;
The third is to develop the sales of downlines directly or indirectly from uplines Remuneration is accrued from performance, or remuneration or rebate is accrued based on the number of personnel developed directly or indirectly.
So, as long as it meets the above three characteristics, it can be judged as suspected of pyramid schemes. Before joining an organization, you must carefully identify it to see if the organization meets the characteristics of a pyramid scheme. If so, call the police in time.
Extended information
A kind of MLM that offers love on a mutual aid platform?
"MLM? How is it possible? I run a charity mutual aid platform." "Zhongcheng Charity The operation model of the mutual aid platform is different from that of MLM. I am also playing as an ordinary member. "I am not doing this platform to make money, and indeed I have not made any money. I may have lost a little."
This is the interrogation scene of a case of organizing and leading pyramid schemes handled by the Public Prosecution Section of the Liangxi District Procuratorate of Wuxi City. The prosecutor has interrogated the criminal suspect Zhang Moumou for the third time. Zhang put her hands on her chest and pretended to be calm. If she hadn't been sitting behind bars in the detention center, she would have been thought to be an intellectual female entrepreneur. Little did they know, she had already operated multiple "mutual aid platforms" suspected of pyramid schemes.
On March 29, 2016, the public security agency received a call from the masses saying that a large number of people were making trouble in an office building in Liangxi District, Wuxi City. When the police arrived at the scene, they found that about 20 people were surrounding Wang Moumou. , Yang Moumou and two others, and claimed that they were defrauded of money. The police took the two to Tongyangqiao Police Station for investigation.
According to their accounts, since February 2016, they have introduced dozens of people to participate in the "Zhongcheng Charity Mutual Aid" online platform. The founder of this platform is Zhang Moumou. Around March 28, the The website was shut down and they themselves lost a lot of money. Through questioning, the police felt that things were not as simple as the two said. After filing the case for investigation, the public security organs discovered that there was an ulterior secret hidden behind the incident.
Zhang Moumou mentioned by Wang Moumou and Yang Moumou is 57 years old. Although he only has a high school education and has not received any financial professional knowledge, after retirement, Zhang Moumou is keen on various " The investment and management of "mutual aid disk" can be said to be rich in experience in the operation of such mutual aid platforms.
In January 2016, Zhang Moumou, Yang Moumou and several friends had dinner together. At the dinner table, Zhang Moumou talked about the popular "mutual aid plate" model. Zhang Moumou introduced that entity companies can first seek help through the mutual aid model to achieve financing purposes, and then return the money earned from the company's investment to the helpers. After such an introduction, several people present became interested.
Soon, Zhang Moumou took the opportunity to invest 160,000 yuan together with Yang Moumou and five other people to develop the "Zhongcheng Charity Mutual Aid" website platform. The website began official operation in February.
Although it is named "charity and mutual aid", what is done behind the platform is illegal. Zhang Moumou took advantage of people's mentality of wanting to take shortcuts to get rich, and used high returns as bait to attract investment from people without any actual operations. Once you become a member of the platform, you first transfer money to the platform in the form of "provide help". After ten days, you can apply for "get help". The platform will match the help recipient and transfer the ten days' interest to the member's account.
At this time, members can choose to stop "investing" and get back the principal and interest, or they can choose to continue "providing help" and enter the next round of "investment".
However, under the temptation of high interest rates, most investors will choose to enter the next round of "investment" until the capital chain breaks. In addition, members can also recommend relatives and friends to join by sending links to the platform website, word of mouth, etc., and each member will receive a corresponding "recommendation reward".
The platform also claims that if members have emergencies at home, such as sudden diseases, disasters, etc., they can apply for love assistance from the platform. In essence, the so-called "matching of help objects" is completed manually by Zhang Moumou in the background. He gives priority to matching his own accounts and obtains high benefits by emptying accounts and other methods.
Jiangsu Procuratorate Network - Case 1: "Mutual Aid Platform" is actually a fake charity and a real pyramid scheme
People's Daily Online - The State Administration for Industry and Commerce disclosed the three major characteristics of new pyramid schemes: "pay entry fees, attract people ”