Legal Regulation Of The Pyramid Selling

Pyramid selling is originally one of the legal transactions in marketing.However,it is more often than not improperly used by unscrupulous merchants and becomes their means to gain illegal profit.As a result,pyramid selling is regulated by law in most countries.China is not an exception.This paper aims at analyzing the present situation of existing pyramid selling of civil law,analyzing the existing civil legal problems,and proposing some corresponding suggestions for improvement.First of all,"the prohibition of marketing regulations" clearly forbids MLM behavior in China.Back to the initial stage of MLM,when it just started to spread in China,the government did not recognize the possible consequences of MLM;therefore,until the illegal and criminal activities happened,the government started to realize the lacking of legal system.After a period of adjustment,in order to maintain the economy market and to protect citizens' legitimate rights and interests,the regulation that I mentioned at beginning prohibited the pyramid schemes.Secondly,this paper argues that the main problems of MLM in China are the lack of civil legal basis and supervision;besides,there are a series of legal issues under the rapid development of a variety of new MLM.The unsound civil legislation may lead to severe consequences,for example,when judicial department need to strike pyramid schemes crimes,they lack of legal basis,which could cause an inconsistent punishment.Additionally,the lack of interdepartmental trust and understanding causes an ambiguous responsibility,which means it is difficult to form a joint force to strike illegal pyramid selling.Furthermore,the rapid development of new MLM results in lacking legal basis in practice.Ultimately,because a series of problems happened in pyramid selling,this article believes it is necessary to accelerate the establishment of MLM civil legislation.In addition,the civil responsibility shall be given priority compare to criminal responsibility and administrative responsibility.Finally,the related departments should update the relevant legal system to adapt to the rapid development of pyramid selling..Currently,pyramid selling is completely banned in China due to national conditions,which means no pyramid selling is allowed.Nonetheless,to adapt the continuous development of our country,regulation on pyramid selling should learn from foreign legislation to some extent by perfecting legal regulation.