[straight news network Beijing on July 29, news] (China News) according to the United States, "newspaper" reported, in recent years, Southern California Chinese community marketing activities can be described as "buzz" around the MLM legitimacy is discussed and the lawsuit also "one after another", which "treasure money is Commission sued" fraud ", are still carried out; Herbalife spent $2 million just to quell the allegations of" pyramid ";" Hail money although calm in the United States, but in China has more than 60 people for "illegal pyramid schemes," was the Changde police arrest.

Nevertheless, the United States there are still hundreds of MLM organizations still in "legal" operation, a lot of Los Angeles Chinese is very confused, one silent, do not know how to define themselves to join the "pyramid" in the end is legal or illegal. To this end, the reporter interviewed the Los Angeles Chinese lawyers Liu Longzhu, he according to their own understanding of the pyramid selling case, according to state and federal laws, is how to define a pyramid model is a legitimate question made detailed analysis.

Lawyers in California and federal law

Liu Longzhu said, according to the provisions of the California criminal law 327, through the unlimited development of members to achieve the purpose of profit is illegal pyramid schemes, the maximum can be sentenced to 3 years in prison, and a fine.

In contrast, the federal laws against MLM divided more detailed, it according to the behavior patterns of MLM, respectively from six aspects criminalizing: 1, mail fraud, a maximum sentence of 20 years, and shall also be fined; 2, false statements, a maximum sentence of 20 years, and fined (personal maximum fine of $5 million, the company the maximum fine of $25 million); 3, telecommunications fraud, a maximum sentence of 20 years, up to a maximum of $100 million in fines; 4, conspiracy to defraud, a maximum sentence of five years; 5, unfair competition, to a maximum fine of 4 million $. If a pyramid scheme violates the above law, companies and individuals involved in the case may be sentenced to 5.

Lawyers to define the legal and legal boundaries of marketing

Emphasizing the Liu Longzhu, MLM legal and not depending on the following factors: 1, whether there is an actual product, for example, if paid $1000 for $800 from product sales and $200 from membership fees, it can also; but if the reverse, $800 is membership fees, product sales of only $200, not even a penny, all the income from the development of the assembly line, Zhang money give money to the Li Sifa, that is violated the above legal; 2, not exaggerated, some MLM companies put their products blown marvelous, and return to the old boy was also, and to the treatment of cancer, but there is proof of the food and Drug Administration? No; clinical trials have proved it? Claims to the no, this is a fraud; 3, no false propaganda: MLM "treasure coins" "the rich group" with amber mine in the world, but there are searchable address is only one place in the Dominican Republic, but what you want to find is a residential building, and amber mine half cents relationship are not, this is fraud; 4, no promises, foreign some MLM companies boast that rate of return on his investment will double the number of times and within a year can become a millionaire and so on, but to the members to join, all the promises are bouncing. This is fraud. 3

(original title: Chinese beauty Chinese lawyer doubts the legitimacy boundary definition of pyramid)

Editor: Xiaoqing

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