Details are as follows:
Punish criminal activities carried out by illegal pyramid selling or disguised pyramid selling according to law, protect citizens' legitimate rights and interests, standardize and maintain market economic order, and ensure social stability. According to the legal and judicial interpretation, we hereby put forward the following opinions on the application of law in handling pyramid selling or disguised pyramid selling criminal cases:
Article 1 One of the following acts stipulated in the Notice of the General Office of the State Council on Forwarding the Opinions of the Administration for Industry and Commerce and Other Departments on Severely Cracking Down on Illegal Business Activities, such as pyramid selling and disguised pyramid selling, belongs to pyramid selling or disguised pyramid selling:
(1) Operators engage in store-free business activities by developing personnel and organizing networks, and participants get remuneration from offline marketing performance;
(2) Participants obtain the qualification to join, introduce or develop others' participation by paying the membership fee or paying the membership fee in disguised form by subscribing for goods (including services, the same below), and get the reward;
(3) The first participant benefits from the fees paid by developing offline members, and the amount of benefits is determined by the order of joining;
(4) The organizer's income mainly comes from the entry fees paid by participants or the fees paid in disguised form by subscribing for commodities;
(five) the organizer will pay part of the expenses paid by the latecomers to pay the remuneration of the latecomers in order to maintain the operation;
(six) other personnel engaged in pyramid schemes in disguised form by developing personnel, organizing networks or taking high returns as bait.
According to the Reply of the Supreme People's Court on How to Identify the Nature of MLM or disguised pyramid selling, if one of the above acts is committed and the circumstances are serious, criminal responsibility shall be investigated for the crime of illegal business operation in accordance with the provisions of Article 225 of the Criminal Law.
Whether the acts listed in the first paragraph are "serious" should be determined in combination with the amount of illegal business, the amount of illegal income, the number of victims, the loss, social impact and other factors.
Whoever commits the acts listed in the first paragraph and commits other crimes as stipulated in the Criminal Law shall be dealt with in accordance with the relevant provisions of the Criminal Law.
Article 2 Without the approval of the financial management department, the principal and interest are repaid regularly, irregularly or in disguised form in the form of breeding, planting, manor development, tourism, membership card, consumption card and qualification card, and the funds are absorbed from unspecified social objects. And the amount is relatively large or there are other serious circumstances, which constitute a crime, in accordance with the provisions of Article 176 of the Criminal Law, criminal responsibility shall be investigated for the crime of illegally absorbing public deposits; Whoever commits the above-mentioned acts by fraudulent means for the purpose of illegal possession shall be investigated for criminal responsibility for the crime of fund-raising fraud in accordance with the provisions of Article 192 of the Criminal Law.
Article 3 Whoever, for the purpose of illegal possession, sells food, health care products, cosmetics, high-tech products and information services in disguised form at a price significantly higher than the market price, if the amount is relatively large or there are other serious circumstances, which constitutes a crime, shall be investigated for criminal responsibility for contract fraud or fraud in accordance with the provisions of Articles 224 and 266 of the Criminal Law.
Those who commit the above acts, which at the same time constitute the crime of producing and selling fake and inferior products or counterfeiting registered trademarks, shall be dealt with in accordance with the relevant provisions of the Criminal Law.
Article 4 The ringleaders or main operators who play the role of organization, planning and command in criminal gangs that commit various forms of fraud and illegally absorb public deposits by pyramid schemes or disguised pyramid schemes shall be dealt with severely according to law; Knowing that others are still actively involved in the crime, and deceiving the victim to participate in various forms of pyramid schemes or disguised pyramid schemes, which constitutes a crime, criminal responsibility shall be investigated by the perpetrator of the relevant crime.
The internal organs, branches, agents, middlemen and other units of companies, enterprises or other units and their personnel actively participate in others' crime through pyramid schemes or disguised pyramid schemes, which constitutes a crime, and shall be investigated for criminal responsibility with the * * * offender of related crimes.
Knowing that others commit crimes by pyramid selling or disguised pyramid selling, they still provide them with funds, account numbers, invoices, certificates, licenses, places, or provide them with convenient conditions such as transportation, storage, warehousing, mailing, etc., which constitutes a crime, criminal responsibility shall be investigated by the perpetrator of the relevant crime.
Article 5 Whoever, in the process of pyramid selling or disguised pyramid selling, uses violence, coercion or illegally restricts the personal freedom of others, which constitutes a crime, shall be investigated for criminal responsibility in accordance with the relevant provisions of the Criminal Law.
Article 6 If an intermediary agency or individual acts as an agent or assists others in registering a company or enterprise by falsely reporting registered capital, making false capital contributions or withdrawing capital contributions, and the amount is huge or there are other serious circumstances, which constitutes a crime, criminal responsibility shall be investigated for the crimes of falsely reporting registered capital, making false capital contributions and withdrawing capital contributions.
If a company or enterprise registered by others knowingly engages in pyramid selling or pyramid selling in disguised form and commits the acts listed in the preceding paragraph, which constitutes a crime, criminal responsibility shall be investigated with the * * * offender of the related crime.
Staff of companies, enterprise registration authorities and financial institutions who accept bribes or seriously neglect their duties in the process of company and enterprise registration, which constitutes a crime, shall be investigated for criminal responsibility in accordance with the relevant provisions of the Criminal Law.
Article 7 The standards of criminal prosecution shall be implemented with reference to the provisions of the Supreme People's Procuratorate and the Ministry of Public Security on the standards of economic crime prosecution. Punish criminal activities carried out by illegal pyramid selling or disguised pyramid selling according to law, protect citizens' legitimate rights and interests, standardize and maintain market economic order, and ensure social stability. According to the legal and judicial interpretation, we hereby put forward the following opinions on the application of law in handling pyramid selling or disguised pyramid selling criminal cases:
Article 1 One of the following acts stipulated in the Notice of the General Office of the State Council on Forwarding the Opinions of the Administration for Industry and Commerce and Other Departments on Severely Cracking Down on Illegal Business Activities, such as pyramid selling and disguised pyramid selling, belongs to pyramid selling or disguised pyramid selling:
(1) Operators engage in store-free business activities by developing personnel and organizing networks, and participants get remuneration from offline marketing performance;
(2) Participants obtain the qualification to join, introduce or develop others' participation by paying the membership fee or paying the membership fee in disguised form by subscribing for goods (including services, the same below), and get the reward;
(3) The first participant benefits from the fees paid by developing offline members, and the amount of benefits is determined by the order of joining;
(4) The organizer's income mainly comes from the entry fees paid by participants or the fees paid in disguised form by subscribing for commodities;
(five) the organizer will pay part of the expenses paid by the latecomers to pay the remuneration of the latecomers in order to maintain the business;
(six) other personnel engaged in pyramid schemes in disguised form by developing personnel, organizing networks or taking high returns as bait.
According to the Reply of the Supreme People's Court on How to Identify the Nature of MLM or disguised pyramid selling, if one of the above acts is committed and the circumstances are serious, criminal responsibility shall be investigated for the crime of illegal business operation in accordance with the provisions of Article 225 of the Criminal Law.
Whether the acts listed in the first paragraph are "serious" should be determined in combination with the amount of illegal business, the amount of illegal income, the number of victims, the loss, social impact and other factors.
Whoever commits the acts listed in the first paragraph and commits other crimes as stipulated in the Criminal Law shall be dealt with in accordance with the relevant provisions of the Criminal Law.
Article 2 Without the approval of the financial management department, the principal and interest are repaid regularly, irregularly or in disguised form in the form of breeding, planting, manor development, tourism, membership card, consumption card and qualification card, and the funds are absorbed from unspecified social objects. And the amount is relatively large or there are other serious circumstances, which constitute a crime, in accordance with the provisions of Article 176 of the Criminal Law, criminal responsibility shall be investigated for the crime of illegally absorbing public deposits; Whoever commits the above-mentioned acts by fraudulent means for the purpose of illegal possession shall be investigated for criminal responsibility for the crime of fund-raising fraud in accordance with the provisions of Article 192 of the Criminal Law.
Article 3 Whoever, for the purpose of illegal possession, sells food, health care products, cosmetics, high-tech products and information services in disguised form at a price significantly higher than the market price, if the amount is relatively large or there are other serious circumstances, which constitutes a crime, shall be investigated for criminal responsibility for contract fraud or fraud in accordance with the provisions of Articles 224 and 266 of the Criminal Law.
Those who commit the above acts, which at the same time constitute the crime of producing and selling fake and inferior products or counterfeiting registered trademarks, shall be dealt with in accordance with the relevant provisions of the Criminal Law.
Article 4 The ringleaders or main operators who play the role of organization, planning and command in criminal gangs that commit various forms of fraud and illegally absorb public deposits by pyramid schemes or disguised pyramid schemes shall be dealt with severely according to law; Knowing that others are still actively involved in the crime, and deceiving the victim to participate in various forms of pyramid schemes or disguised pyramid schemes, which constitutes a crime, criminal responsibility shall be investigated by the perpetrator of the relevant crime.
The internal organs, branches, agents, middlemen and other units of companies, enterprises or other units and their personnel actively participate in others' crime through pyramid schemes or disguised pyramid schemes, which constitutes a crime, and shall be investigated for criminal responsibility with the * * * offender of related crimes.
Knowing that others commit crimes by pyramid selling or disguised pyramid selling, they still provide them with funds, account numbers, invoices, certificates, licenses, places, or provide them with convenient conditions such as transportation, storage, warehousing, mailing, etc., which constitutes a crime, criminal responsibility shall be investigated by the perpetrator of the relevant crime.
Article 5 Whoever, in the process of pyramid selling or disguised pyramid selling, uses violence, coercion or illegally restricts the personal freedom of others, which constitutes a crime, shall be investigated for criminal responsibility in accordance with the relevant provisions of the Criminal Law.
Article 6 If an intermediary agency or individual acts as an agent or assists others in registering a company or enterprise by falsely reporting registered capital, making false capital contributions or withdrawing capital contributions, and the amount is huge or there are other serious circumstances, which constitutes a crime, criminal responsibility shall be investigated for the crimes of falsely reporting registered capital, making false capital contributions and withdrawing capital contributions.
If a company or enterprise registered by others knowingly engages in pyramid selling or pyramid selling in disguised form and commits the acts listed in the preceding paragraph, which constitutes a crime, criminal responsibility shall be investigated with the * * * offender of the related crime.
Staff of companies, enterprise registration authorities and financial institutions who accept bribes or seriously neglect their duties in the process of company and enterprise registration, which constitutes a crime, shall be investigated for criminal responsibility in accordance with the relevant provisions of the Criminal Law.
Article 7 The standards of criminal prosecution shall be implemented with reference to the provisions of the Supreme People's Procuratorate and the Ministry of Public Security on the standards of economic crime prosecution.