Study On The Crime Of Organizing And Leading Pyramid Schemes

Direct selling as new marketing strategy existed in the 1940s and now operate in many countries all around the world. Pyramid schemes are illegal business models which appeared with the development of the imported direct selling.In China, within the recent three decades ,with the growing knowledge of the nature of pyramid schemes, the development of Chinese actual conditions and the changes of policies, ,the Chinese goverment has shifted its attitudes towards pyramid schemes, from giving permission and prohibiting to allowing the operations with strict restrictions.Besides the introduction, this paper discussed the pyramid schemes from seven aspects.Part 1 will clarify the definition of pyramid schemes. At home and abroad there are many terms for pyramid schemes, which causes many confusions in understanding and even in law provisions.Part 2 will present a brief review of the history of pyramid schemes, mainly the law provisions on pyramid schemes in some other countries and China.Part 3 will analyze the definition and constitution of the Crime of Organizing and leading Pyramid Schemes based on Article 224(1).Part 4 analyze kinds of unfinished status that can be occured in this crime and as a joint offence and their corresponding criminal responsibilities.Part 5 will analyze the relationship between the Crime of Organizing and Leading Pyramid Schemes and some other crimes, such as Illegal Operation and Fraud.Part 6 will review different ciriminal responsibilities about this crime and the three main kinds of opinions on the conviction of pyramid schemes.Part 7 will discuss the improvement of the legislation of the Crime of Organizing and Leading Pyramid Schemes by providing some lawmaking advices.