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China amends criminal law to curb pyramid sales

(Xinhua)
Updated: 2008-08-26 17:56

China is considering establishing a new crime concerning pyramid sales in its draft amendment to the Criminal Law submitted to the country's top legislature, a step to further to curb the scheme in the country.

The crime of organizing, leading and running pyramid sales will face three to seven years jail terms and fines for the most serious cases, according to the draft, which was tabled at the current session of the Standing Committee of the National People's Congress for a second reading.

Pyramid selling, in which one sales person relies on recruiting subordinate sales people, was banned by cabinet regulations in 1998.