The Study On Illegal Pyramid Scheme Criminal Penalties

Specificity of the direct marketing itself, some unscrupulous traders take advantage of MLM fraud, resulting in a bad influence.Initially, direct marketing accessed to Hong Kong and Southeast Asian countries, they called multi-level direct selling as pyramid selling, this name described the features of MLM image, but when the multi-level direct marketing became to tool of fraud, pyramid schemes has a more derogatory color. All countries draw up legislation for the pyramid scheme accordingly. The market economic order is imperfect, incomplete relevant laws and regulations, people's spending psychological immaturity. These combined factors led to the spread of pyramid schemes in China, and Illegal Pyramid scheme(IPS) has become a instability factor in the operation of society and economy. Although China has been working hard to crack down on pyramid schemes organization, pyramid schemes, pyramid schemes officers, but now the pyramid schemes are still rampant, there is no diminished trend,, but more concealed. More seriously, with the rapid popularization of the Internet in China, more and more pyramid schemes organization began to make use of the Internet for MLM pyramid schemes; it will increase more difficulty in the fight against pyramid schemes and MLM organizations. Is there need for specialized distributors crime of criminal legislation and how legislation? In addition to use criminal means as the last legal means to punish the pyramid schemes, but also can use which effective legal means? These problems need laws to solve in illegal pyramid schemes. After the implementation of Criminal Law Amendment 7, the discussion continued. The illegal pyramid schemes is variant of direct marketing, therefore, eliminating the illegal pyramid schemes organization, on the one hand, there is need of making relevant laws and regulations to crack down on illegal pyramid selling activities. On the other hand, also need to improve the legal norms of direct marketing and building direct marketing, direct marketing companies to provide a good environment for development.This paper analyzes the basic problems of crime pyramid schemes, learning from foreign legislative experience, studying in existing defects in pyramid schemes, to crack down on pyramid schemes and put forward legislative proposals in regulating the direct sales. This article is divided into three parts:Firstly, the basic theory of direct selling and the concept of MLM evolution in China. From the point of view of marketing, this paper introduces positive significance of direct marketing as a means of marketing. Analyses MLM's meaning in legal documents of different times. Sort out the different concept of MLM and the boundaries in criminal law, administrative law. Then, analyze the operation mode of illegal pyramid schemes, reveal the characteristics of illegal pyramid schemes, combined with the development status of traditional MLM and Network MLM elaborate the deep harm which illegal pyramid scheme bring.Secondly, organize and lead illegal pyramid schemes activities crime analysis, derived problem from the crime. Analyze the constitute and patterns of organize and lead illegal pyramid schemes crime in microscopic point and reveal different characteristics compared with other crime. This part mainly addresses three questions: Firstly, after the implementation of Criminal Law Amendment 7, whether the original judicial interpretation which Supreme Court made on the crime of illegal business valid or whether the Criminal Law Amendment 7 pyramid schemes together for punishment, or judicial interpretation will failure; Secondly, whether the subject of organize, lead illegal pyramid schemes activities crime include the unit; Thirdly, whether the target of organize, lead illegal pyramid schemes activities crime is activity or MLM organizations, or both.