To determine whether it is a pyramid scheme, 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 Prohibition of Pyramid Selling": Article 2: Pyramid selling means that the organizer or operator develops personnel by calculating and paying remuneration to the people being developed based on the number of people or sales performance they directly or indirectly develop, or requiring the people to be developed.
Development personnel obtain illegal benefits by paying a certain fee as a condition to obtain membership qualifications, disrupt economic order, and affect social stability.
Article 7 The following behaviors are pyramid schemes: (1) The organizer or operator requires the developed personnel to develop other personnel to join through the development personnel, and the personnel to be developed will be calculated and paid based on the number of personnel directly or indirectly developed on a rolling basis.
Remuneration (including material rewards and other economic benefits, the same below), and seeking illegal benefits; (2) The organizer or operator, through the development personnel, requires the development personnel to pay fees or pay fees in disguised form by subscribing for goods, etc., to obtain membership or
Develop the qualifications of other personnel to join and seek illegal benefits; (3) The organizer or operator requires the developed personnel to develop other personnel to join, form an upline and downline relationship, and calculate and pay the upline based on the sales performance of the downline
Remuneration, seeking illegal benefits.
In the "Regulations on 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 schemes.