Private partnership is also called private pure capital operation and private mutual financial management. Its predecessor is "voluntary chain operation", "free chain operation" or "special chain operation". Its operation mode is that the practitioners pay a huge entrance fee (69,800 yuan) in advance and return it to19,000 yuan the next month as the expenses for the practitioners to live and receive in different places. Practitioners develop their relatives and friends to go offline and gain benefits through tools such as five levels and three gold. It is called "new MLM organization" in the macro-control of relevant government departments and media reports.

Relevant laws

Decree No.444 of the State Council of the People's Republic of China —— Excerpted from the report of People's Republic of China (PRC) and the Ministry of Public Security on August 0, 2005.

The MLM Prohibition Ordinance was adopted at the 10 1 executive meeting in the State Council on August 6, 2005. It is hereby promulgated and shall come into force as of June 6, 2005.

Prohibition of MLM regulations

Chapter I General Principles

Article 1 These Regulations are formulated for the purpose of preventing fraud, protecting the legitimate rights and interests of citizens, legal persons and other organizations, maintaining the order of the socialist market economy and maintaining social stability.

Article 2 The term "pyramid selling" as mentioned in these Regulations refers to the act that the organizer or business developer calculates and pays the remuneration of the developed personnel on the basis of the number of personnel directly or indirectly developed by the organizer or business developer, or requires the developed personnel to obtain the qualification to join on the condition of paying a certain fee, so as to seek illegal interests, disrupt economic order and affect social stability.