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China to conduct 3-month drive against pyramid sales

(Xinhua)
Updated: 2008-06-23 19:34

BEIJING  -- Faced with new trends in pyramid sales rackets, public security, industry and commerce officials in China said on Monday they would start a three-month campaign at an undisclosed date against the illegal activity.

"We have made some progress in banning pyramid selling and standardizing direct distribution, but the situation remains grim, " said Zhong Youping, vice director of the State Administration for Industry and Commerce (SAIC).

He said the SAIC had found that pyramid sales activities were expanding to schools and the western part of China; were using the internet and were sometimes disguised as direct distribution, franchises and chain sales. In some cases, Zhong said, pyramid sales organizations became gangs.

"We would take decisive and effective measures to prevent the spread of pyramid selling," Zhong said.

In addition, the SAIC would cooperate with educational authorities to study students' psychology and make relevant teaching materials to help raise their awareness; work with local police to prevent pyramid selling from entering the western part of China; and start a database on major organizers and participants of pyramid selling, he said.