Research On Legal Measures Against The Spread Of A New Type Of Pyramid Selling

Through systematic studies on a new type of pyramid sales and analysison the reason of its large-scale expansion, we investigate the legalcauses underneath in this paper. We propose the integrated legalcountermeasures to hold this type of pyramid sales from five importantlegal perspectives, namely, legislation, enforcement of law,administration of justice, law-abiding and legal supervision.This paper is consisted of four parts:The first part is a brief introduction to the new type of pyramid sales.Especially, in this part, we try to differentiate between several groupsof important concepts. These include: general-sense pyramid sales versusnarrow-sense pyramid sales, traditional pyramid sales versus new-typepyramid sales, and ‘illegal pyramid sales’ versus ‘illegality ofpyramid sales’. A major focus of this part of research is to defineclearly the new type of pyramid sales by investigating its distinctfeatures compared to the traditional pyramid sales.In the second part, we introduce the present situation and reasonsof the new type of pyramid sales. Firstly, we describe clearly the ratioof the new type of pyramid sales to the overall pyramid sales and alsothe most active zones of the new-type pyramid sales in China using graphicsand tables. Secondly, we investigate the main causes of the new type ofpyramid sale, which include the legal cause, the economic cause and thesocial cause. Among all these, we lay special emphasis on its legal cause.In the third part, we present the status quo of pyramid sales inoverseas countries and regions. Particularly, we show the legalcountermeasures in practice to hold the pyramid sales in the United States,Japan, Republic of Korea and Taiwan. We expect these will facilitatelegislation activity against pyramid sales in mainland China.In the fourth part, we propose the feasible legal countermeasuresto hold the pyramid sales in mainland China. we deliberately propose thesecountermeasures from the five important legal perspectives of legislation,enforcement of law, administration of justice, law-abiding and legalsupervision, and, in a strategic height. The objective of our proposalis to address both the symptoms and the root cause of the pyramid sales. Promisingly, by practicing these, we shall hold the fast expansion of thenew-type pyramid sales by the roots, and, solve this issue veryfundamentally.