Pyramid sales and deceptive marketing schemes are cancerous and a hidden threat to society, a government official has said.
The head of the Fair Trade Department of the State Bureau of Industry and Commerce, Liu Peizhi, made the comments when warning there had been a resurgence of the schemes.
He said the situation had become harder to control because the pyramid sales and marketing schemes had gone underground and spanned several different cities. This had happened despite a government ban on at least seven types of schemes.
'These activities have become a serious threat to the normal operation of our economy and social stability,' Mr Liu was yesterday quoted as saying by Xinhua. 'They are a cancerous tumour which we must remove.
'Based on Chinese laws, these seven types of pyramid sales and marketing schemes are illegal and must be completely eradicated.' Mr Liu said many of these schemes were run by local triads.
The seven types of pyramid sales and marketing schemes outlawed covered a wide range of sales methods, Xinhua said.