Enforcement officers that have direct interests with the party concerned shall withdraw. (来源：英语学习门户 http://www.EnglishCN.com)

　　Article 16　When investigating and handling suspected pyramid selling acts， the enforcement officers of the administration for industry and commerce shall produce their identity documents to the party or the relevant personnel.

　　Article 17　When enforcing sealing up or distrainment， the administration for industry and commerce shall deliver on-site to the party the seal-up or distrainment warrant and a list of the property and materials sealed up or distrained.

　　In places where transport is inconvenient or where the investigation and handling of the case may be affected if seal-up or distrainment is not enforced in time， the seal-up or distrainment may first be enforced， and the seal-up or distrainment warrant shall be obtained and served on the party within 24 hours thereafter.

　　Article 18　The time limit of seal-up or distrainment enforced by the administration for industry and commerce may not exceed 30 days. If the case is complicated， the time limit may be extended for 15 days upon the approval of the principal person in charge of the administration for industry and commerce at the county level or above.

　　The administration for industry and commerce shall keep safe the property sealed up or distrained， and may not use or destroy them. If it causes any loss to such property， it shall be liable for compensation unless such loss is caused by events of force majeure.

　　Article 19　If the administration for industry and commerce has enforced seal-up or distrainment， it shall find out the facts in a timely manner and make a decision on the case during the time limit of the seal-up or distrainment.

　　If an act is found to be pyramid selling upon investigation and verification， the illegal property sealed up or distrained shall be confiscated in accordance with the law. If， upon investigation and verification， no pyramid selling act is found or there is no need for sealing up or distrainment， the seal-up shall be removed and the distrained property shall be returned immediately after a handling decision is made.

　　If the administration for industry and commerce fails to make a decision on the case within the time limit， the items sealed up shall be deemed unsealed and the distrained property shall be returned. If the administration refuses to return the property， the party may institute an administrative action at the people‘s court.

　　Article 20　If the administration for industry and commerce and its working personnel use or destroy the sealed or distrained property， thereby causing economic losses to the party， they shall be bear the liability for compensation.

　　Article 21　When the administration for industry and commerce investigates and handles suspected pyramid selling acts， the party has the right to present his statement and defence.

　　Article 22　The administration for industry and commerce shall make on-site written records when investigating and handling suspected pyramid selling acts.

　　On-site written records and the list of property sealed up or distrained shall be signed by or affixed with the seals of the party， the witness and the enforcement officers. If the party is not present， or if the party or the witness refuses to sign or affix his seal， the enforcement officers shall make a note in the on-site written records.

　　Article 23　If an act is found to be pyramid selling upon investigation and verification， the administration for industry and commerce and the public security authority may issue a warning or reminder to the public.

　　Issuance of warning or reminder to the public shall be approved by the principal person in charge of the administration for industry and commerce at the county level or above or the public security authority.

　　PART FOUR　LEGAL LIABILITY

　　Article 24　If anyone has an act specified in Article 7 hereof such as organizing and planning pyramid selling， the administration for industry and commerce shall confiscate his illegal property and illegal gains， and impose a fine of not less than Rmb 500，000 and not more than Rmb 2 million. If the case constitutes a criminal offence， criminal liability shall be pursued in accordance with the law.

　　If anyone has an act specified in Article 7 hereof such as referring， luring or forcing other people to participate in pyramid selling， the administration for industry and commerce shall order him to cease the illegal act， confiscate his illegal property and illegal gains， and impose a fine of not less than Rmb 100，000 and not more than Rmb 500，000. If the case constitutes a criminal offence， criminal liability shall be pursued in accordance with the law.

　　If anyone has an act specified in Article 7 hereof such as participating in pyramid selling， the administration for industry and commerce shall order him to cease the illegal act， and may impose a fine of not more than Rmb 2，000.

　　Article 25　When imposing penalty in accordance with Article 24 hereof， the administration for industry and commerce may order the suspension of business operation for rectification or revoke the business licence in accordance with the provisions of the relevant laws or administrative regulations.

　　Article 26　If anyone provides business premises， training venue， sources of goods， safekeeping， warehousing or other conditions for the pyramid selling acts specified in Article 7 hereof， the administration for industry and commerce shall order the party to cease the illegal act， confiscate his illegal gains and impose a fine of not less than Rmb 50，000 and not more than Rmb 500，000.

　　If anyone provides internet information services for the pyramid selling acts specified in Article 7 hereof， the administration for industry and commerce shall order the party to cease the illegal act and notify the relevant authority to impose penalty in accordance with the Administration of Internet Information Services Procedures.

　　Article 27　If the party uses， replaces， transfers or destroys any sealed or distrained property without authorization， the administration for industry and commerce shall order the party to cease the illegal act and impose a fine of not less than 5% and not more than 20% of the value of the property used， replaced， transferred or destroyed. If the party refuses to carry out rectification， a fine of not less than one time and not more than three times the value of the property used， replaced， transferred or destroyed shall be imposed.

　　Article 28　If anyone has any acts specified in Article 10 hereof or refuses or obstructs the investigation and handling of pyramid selling acts in accordance with the law by the enforcement officers of the administration for industry and commerce， and such act constitutes a violation of security administration， the public security authority shall impose penalty in accordance with the provisions of the laws and administrative regulations on security administration. If the act constitutes a criminal offence， criminal liability shall be pursued in accordance with the law.

　　Article 29　Where the administration for industry and commerce， the public security authority and their working personnel abuse their power， are derelict in their duties or practise graft， and fail to investigate and handle pyramid selling acts in accordance with the responsibilities and procedures stipulated herein， or fail to investigate and handle the pyramid selling acts discovered， or support， shield or connive pyramid selling acts， if the case constitutes a criminal offence， the criminal liability of the person in charge that is directly responsible and other directly responsible persons shall be pursued in accordance with the law. If the case does not constitute a criminal offence， administrative penalty shall be imposed in accordance with the law.

　　PART FIVE　SUPPLEMENTARY PROVISIONS

　　Article 30　These Regulations shall be implemented as of 1 November 2005.