Promulgated: August 23 2005

Effective: November 1 2005

Applicability: The term 'pyramid selling' refers to an act whereby an organizer or a promoter of a business operator seeks illegal benefits, disturbs the economic order and affects the social stability by calculating and paying remuneration to participants based on the number of persons recruited directly or indirectly by them or based on their sales results, or by requiring participants to pay a certain fee as the condition for admission, or by other means (Article 2).