Core Viewpoint - The company Changsha Green Rhythm Low Carbon Environmental Technology Co., Ltd. is suspected of illegal pyramid selling, operating without a direct selling license while promoting its products under the guise of a legitimate direct selling business [1][2]. Group 1: Company Operations - The company has not obtained a direct selling license, which is a requirement for operating in this sector in China [2][4]. - Members are required to purchase products worth approximately 18,000 yuan to become personal members, with the company primarily promoting kitchen appliances under the "Bangjia Doctor" brand [2][5]. - The products sold by the company are priced significantly higher than similar items available on e-commerce platforms, indicating potential price manipulation [3]. Group 2: Legal and Regulatory Issues - According to Chinese law, only companies that have received approval from the Ministry of Commerce and obtained a direct selling license can engage in direct selling activities [4][9]. - The parent company, Green Rhythm Group, holds a direct selling license, but this does not extend to its subsidiary, Changsha Green Rhythm Low Carbon, which is operating illegally [8][9]. - The company does not meet the minimum registered capital requirement of 80 million yuan for direct selling enterprises, as it has only 2 million yuan registered capital [5][8]. Group 3: Historical Context - The company has faced previous allegations of illegal pyramid selling, with concerns raised as early as 2019 regarding its business practices [5][13]. - The Green Rhythm Group has a history of promoting products that are not included in the approved direct selling product list, which raises further legal concerns [13].