[redwriter]

Just wondering if anyone knows MLM operations in Hong Kong. It seems as if many ads for jobs are just MLM scams. I thought this was illegal in China and Hong Kong. Also, heard but not seen, some MLM companies have even opened sales centers. Would like to hear from anyone with MLM experience, good or bad.

[PDLM]

I can't comment on China, but in Hong Kong Pyramid-selling is illegal, but MLM per se is not. The Pyramid Selling Prohibition Ordinance (Cap355) includes these definitions:

"pyramid selling scheme" means a scheme whereby-

(a) a participant in the scheme is granted a licence or right to introduce another participant into the scheme who is also granted such licence or right and who may further extend the chain of persons who are granted such licence or right, notwithstanding that there may be a limitation to the number of participants or that there may be any further conditions affecting eligibility for such licence or right; and
(b) a participant receives a reward on, or at any time after, the introduction into the scheme by him of another participant which reward is based, whether wholly or in part, otherwise than on the fair market value of goods or services actually sold by him or by or through that other participant;

"reward" includes refund, commission, discount or allowance but does not include payment for sales demonstration equipment and materials supplied at not more than their fair market value and not resold.

and these penalties:

Any person who knowingly promotes a pyramid selling scheme commits an offence and is liable on conviction upon indictment to a fine of $100000 and to imprisonment for 3 years.

[Boris]

Indeed, Pyramid ( scam ) selling in its pure form is outlawed in China. However as some might of know from last year or the year before, that legit MLM companies where also pulled into this. Famously Avon and Amway.

It forced home sales companies to a) register with the government b) have a distinct retail presence.

Amway and Avon already had this, but it still caused them problems initially. So as you mention " Also, heard but not seen, some MLM companies have even opened sales centers. " is this what you are referring too ?

If yes then this is the reason. MLM is accepted in China as an agent driven , real product industry. Any other type is banned and rightly so, seeing as the Chinese culture, to Western eyes, has a LOT of gullibility inbred.