According to the announcement of the Ministry of Public Security, the Thai police jointly uncovered a pyramid selling organization called Yun Shu Mao and arrested three Chinese suspects. They were wanted for pyramid selling in China and fled to Malaysia in a hurry to continue selling pyramid schemes. As many as 180,000 people were offline, and then they fled to Thailand and were arrested by the police by pretending to be Thai citizens, Buddhists, etc. The amount involved was 9 billion baht (approximately RMB 1.695 billion). In September last year, the Ministry of Public Security and the State Administration for Industry and Commerce announced the top ten typical cases of pyramid schemes, among which the "Cloud Data Trade Alliance Network" pyramid scheme case was among them.

To determine whether a company is a pyramid scheme, it depends on whether the company's operation model complies with the definition of pyramid schemes under national law. MLM means that organizers or operators develop people by calculating and paying rewards to the people being developed based on the number of people they directly or indirectly develop or sales performance, or requiring the people being developed to obtain membership qualifications on the condition of paying a certain fee, etc. way to obtain benefits.

At present, most of the MLM companies have repackaged and confused legal direct sales with illegal MLM business models to build channels. Therefore, by correctly distinguishing the two business models of direct selling and pyramid selling, you can determine whether a company's business activities are pyramid schemes.