China to reinforce crackdown on pyramid schemes

China will reinforce its crackdown on pyramid selling, according to a government guideline released Friday.

The guideline, jointly released by the Supreme People's Court, the Supreme People's Procuratorate and the Ministry of Public Security (MPS). said chief leaders of pyramid selling groups will be prosecuted if the number of people involved in their pyramid schemes exceeds 30.

Repeat offenders of the ban on pyramid schemes will be subject to criminal prosecution if their group members surpass 15.

In China, those involved in pyramid selling rings could face fines and up to five years in prison, and prison terms could be extended to more than five years in serious cases.

Pyramid selling has been banned in China since 1998, but has remained rife in many regions. In recent years, the schemes have evolved from sales of fake products to more sophisticated fundraising ploys.

In August, the MPS announced that Chinese police had seized 560 people involved in pyramid schemes during a special crackdown since the beginning of June.