China will continue to crack down on pyramid sales network while lifting the ban on direct sales, officials from the Legislation Office of the State Council and the Ministry of Commerce have said.

The opening of the direct sales does not mean that the pyramid sales network would be permitted, the officials made the remarks while answering questions of the media concerning the issuance of regulations on management of direct sales by the State Council on September 2.

The goal of stipulating the regulations, which will go into effect on December 1, is aimed at strengthening supervision over direct sales and ensuring the legal rights of consumers, they said.

Also on September 2, the State Council issued regulations on forbidding pyramid sales schemes, which were more in China before 1998, saying that such acts are "illegal" and those who broke the regulations would be punished.

These regulations will take effect on November 1, one month ahead of the one on direct sales.

It is widely expected that the new authorized regulations would be helpful in reducing illegal sales and ensuring the sustained and healthy development of the direct sales industry.

(Xinhua News Agency September 8, 2005)