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Law

Forming a "personnel chain" and "money chain" can not escape the suspicion of MLM

2022-04-27   

App is intended to remind experts to make more money Forming a "personnel chain" and "money chain" can not escape the suspicion of MLM People can't help but sigh that making money has become so easy in the Internet age? In recent years, various "money making" apps have emerged in endlessly, attracting countless people to download. Zhang Tao, partner of Beijing Deheng Law Firm and director of the network and data research center, said in an interview with the reporter of the rule of law daily that such apps mostly use the marketing means of "pulling people's heads". The platform should strictly clarify the boundary between marketing and MLM to avoid crossing the boundary. "Make money" app "pull people" into a fixed routine Han Di, a young Baoma, likes to brush short videos in her spare time. Once, an advertisement "watching videos can easily make a lot of money" popped up on a short video platform attracted her attention. Through the link, she downloaded the software. "Brushing a video will give the corresponding notes. 10000 notes can be exchanged for 1 yuan. You will also get an additional cash reward after completing the daily check-in." Because the software has no cash withdrawal restrictions, Han Di smoothly withdrew the 1 yuan from the check-in after downloading. After that, the system pushed a message to "remind" her that she can make more money by "pulling her head". The publicity of "35 yuan on the day of the first invitation" made Han Di send the download link to a friend. After the friend downloaded the software with the link she sent, the software showed that the money had arrived, and the system reminded him that he could still continue to invite friends to download and continuously expand the funds. However, after successfully inviting three friends, Han Di successively invited five new people to register, but the software showed that the invitation failed and no corresponding reward was given. After using the software, Han Di also found that if you don't rely on "pulling people's heads", the income of brushing videos alone is very low, and the platform provides the existing fixed gear. Except that the lowest gear is 0.3 yuan, the lowest other gear is 15 yuan. If the amount is not enough, you can't withdraw cash. You can only dig new users to earn "head fee". Compared with Han Di, Li Bo, who is engaged in individual business in Beijing, not only didn't make money from an app that is also known as "making money by brushing video", but also "made money". The app he used was redeemed for cash by swiping the video to obtain tokens, but the platform had to deduct a lot of handling charges for cashing tokens. There were two solutions. First, the more people he pulled, the more tokens he obtained, and the withdrawal handling charges would be reduced accordingly; Second, buy a certain amount of tokens by recharging to unlock some high-level tasks and obtain more tokens. However, after recharging, Li Bo found that the income from the task was still very small, and the income for one month was less than the recharging fee. At present, in the mobile application market, there are not a few apps with the gimmick of "making money", and they cover a wide range of fields. After downloading several software, the reporter found that such software will basically insert advertisements of other similar software in the process of use, and attract users to download with red envelope icons or words such as "click to make money". Forming a "personnel chain" and "money chain" may be suspected of pyramid selling Almost every "money making" software claims that there is no routine, but the reporter found that in addition to the difficulties in cash withdrawal, one of the core routines of this kind of software is "pulling heads". If users want to obtain high profits, they must pull more people to "join the partnership". In fact, the way of "pulling people" is not unique to "making money" apps. At present, many software have so-called "pulling new" preferential means to improve downloads and traffic. "According to the definition of MLM in the regulations on the prohibition of MLM implemented in 2005, 'touting' behavior is one of the manifestations of MLM." Zhang Tao reminded that at a time when app "pulling people" behavior is becoming more and more frequent, we should be vigilant against its sliding to pyramid selling violations. Previously, apps including "fun step" were investigated by relevant departments for suspected MLM. How to distinguish between normal marketing means and suspected MLM? Zhang Tao pointed out that according to the regulations on the prohibition of MLM, MLM refers to the behavior of organizers or operators' development personnel to seek illegal interests, disrupt economic order and affect social stability by calculating and paying remuneration to the developed personnel based on the number of personnel they develop directly or indirectly or sales performance, or requiring the developed personnel to obtain membership qualification on the condition of paying a certain fee. Based on this definition, Zhang Tao believes that if in the process of APP marketing, organizers or operators require members to develop lower level members and give economic rewards according to the number of lower level members they develop directly or indirectly, it may constitute MLM. For example, some apps encourage users to develop offline. While giving red envelope cash back rewards, they also divide users into levels such as one star talent, two star talent and three star talent. The level is directly proportional to the number of offline users. Each level has different sharing rewards, which may be suspected of constituting MLM. In addition, if the so-called entry fee is charged in the process of APP marketing, such as requiring the developed personnel to pay a certain fee or pay a fee in disguised form by subscribing to goods, it may also be suspected of constituting MLM. Zhao Zhanzhan, a special researcher of the ECOSOC e-commerce research center of www.ecosoc.com, further pointed out that whether app "pull people" behavior constitutes MLM depends on whether it constitutes a "personnel chain" and "money chain". Specifically, the "personnel chain" is to make the old users and new users form the upper and lower levels and form the interpersonal network of the upper and lower levels through the development of offline; "Money chain" is to calculate and pay remuneration based on the number of offline people directly and indirectly developed by the participants themselves, or each level can draw a certain commission or commission from the membership fee or other expenses joined by the next level. In the view of Zhu Wei, deputy director of the communication law research center of China University of political science and law, the marketing model of app "pulling people" cannot be hastily identified as MLM "across the board", but should be comprehensively judged in combination with factors such as user development model and rules, the basis for giving economic rewards, and the rules for calculating and paying remuneration. Zhu Wei has studied some software that uses "pulling heads" as a marketing means, and found that most of these software do not divide the personnel level, but use red envelopes, cash back and other means to encourage users to constantly recommend new users to register. Although they often set a certain routine in the cash withdrawal link, and even deceive and mislead users, such "pulling heads" behavior alone does not belong to the category of MLM. Need to strengthen the application platform review obligation In the name of false commodity transactions such as second killing of goods, promotion of goods and provision of services, an app develops regional managers and regional directors in the form of return of income money, reward shopping money and subsidies, so as to induce members to continuously "pull their heads" to develop offline to obtain income, earn price difference and continuously expand the capital trading chain; An app requires its members to buy "happy beans" online, then "happy beans" rush to buy false commodity orders launched by the platform in the app, resell them to lower level members after increasing the price to obtain the price difference, and make profits through the level-by-level circulation among members through false orders... In recent years, relevant departments have announced many cases of online pyramid selling using apps. In Zhao Zhanzhan's view, compared with traditional offline pyramid selling, online pyramid selling models in the guise of "Internet +" emerge in endlessly, are more hidden, involve more people, have higher amounts of money, and are more harmful. Driven by some interests, people lack the ability to distinguish, and are easy to "get caught". It is necessary to strengthen the public's awareness of early warning and supervision of such acts, and form a joint force of public security departments in time. At the same time, we should consider issuing relevant specifications to regulate the marketing means of app "pulling heads" to prevent cross-border. Zhang Tao agrees with this. He added that the existing laws stipulate the types of MLM, but do not further specify the specific judgment standards. Unclear illegal standards will also encourage operators' speculative behavior. It is suggested that the specific judgment standards of MLM should be stipulated for the new types of online MLM. "Previously, some apps that were suspected of online pyramid selling due to the offline development of 'pull people' were investigated and removed from the shelves, and many of them appeared on the shelves again as another app through 'transformation'." Zhang Tao believes that this is related to the low requirements for the review obligation of the application platform in the current regulations on the management of mobile Internet application information service (hereinafter referred to as the regulations). "We should focus on strengthening the obligations of the application platform in laws and regulations." Zhang Tao pointed out that the draft for comments on the revision of the administrative provisions issued in January 2022 has greatly strengthened the review obligation of the application platform, requiring the application distribution platform to establish and improve management and technical measures to timely detect and prevent application violations. It can be considered to use the application for MLM as one of the illegal acts that the application platform should find and prevent in time. At the same time, the application platform should be guided to carry out special supervision on the applications that adopt a similar "pull the head" marketing mode. The platform should warn and mark its risks. Once it is found that its marketing "out of control" evolves into MLM, it should take timely disposal measures such as suspension of service and off the shelf, keep records and report to relevant departments. (reporter Zhao Chenxi) (outlook new era)

Edit:Luo yu Responsible editor:Wang xiao jing

Source:Legal Daily

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