Dead ants and other buggy business schemes infest China

China doesn't allow Multi-Level Marketing (MLM) schemes or pyramid schemes, period. The government allows single level direct sales if a company has a proper license. But no recruiting is allowed and no multi-level structure is allowed.

While we often think of China as being behind the times compared to the United States, those of us who study the ill effects of MLM wish that our government took such a hard line against this abusive business structure. Despite the laws against MLMs in China, there are people and organizations who do businesses there anyway. Companies have discovered that it is impossible to make money with the single level selling that the government allows, but that the MLM structure thrives with over a billion people available to be recruited. Usana Health Sciences and Herbalife are just two MLMs that have been found doing business illegally in China by undercover investigators.

And now a promoter of an Ant Farm pyramid has left thousands of Chinese consumers penniless. Liaoning province is fast becoming the hub for illegal pyramid schemes and illegal MLM activities in China. It was there that the Yilishen Tianxi Group offered an "opportunity" to purchase a box of ants for the equivalent of U.S.$1,375.