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China to root out illegal pyramid sellers

Updated: 2011-08-15 11:19

By Zhao Chunzhe (chinadaily.com.cn)

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Guangxi local authorities are cracking down on pyramid selling, arresting key players as the country as a whole vows to eradicate such network marketing, www.cnr.com reported on Monday.

The Guangxi Zhuang autonomous region started a campaign on August 11 to wipe out multi-level marketing schemes that have been rife in the region.

A total of 400 police officers in the region’s Laibin arrested 41 people and broke six gangs, confiscating 1,000 multi-level marketing brochures, according to Liu Lujun, an official with China’s Ministry of Public Security.

However, due to the strike, many pyramid sellers have since escaped to other places.

Liu said the next move was to further educate people to quit the illegal practice.

In addition, Liu said the police would work to obtain evidence, which was often a tough job in such cases.

He also expressed the authority’s determination to punish the kingpins in the marketing networks, the report said.