Rampant Internet pyramid schemes involve 40 million Chinese

17:14, March 21, 2011      

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China's first survey report on Internet pyramid schemes, released recently by China E-Business Research Center and the China Anti-Pyramid Selling Association, has suggest a rapid increase in Internet pyramid schemes over recent years.

The "2010 China Internet Pyramid Selling Survey Report" shows a total of 40 million people were involved in these schemes in 2010, and a total of 6 billion yuan involved in the pyramid schemes has been investigated and handled by the industry and commerce department.

This is a new form of pyramid scheme that hides under the guise of e-commerce.

Wu Xuefei, an analyst from the China E-Business Research Center, said the main characteristics of the Internet pyramid schemes in recent years is that they have stronger virtual aspects and the spread of them is more cross regional. It is more deceptive and more covert. Therefore, Internet pyramid schemes are still in the "gray area" of industry and commerce regulation.

However, the government has not yet introduced specific laws and regulations regarding these schemes, which has made it difficult for regulators to combat this behavior.

By Li Yancheng, People's Daily Online

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