The crackdown on the practice - deemed a threat to markets and social stability - was launched by the city's municipal government last week .

So far, the municipal government has identified 28 suspects allegedly involved in pyramid selling, official statistics indicate.

And the industrial and commercial administration of the city has withdrawn business licenses from 27 enterprises allegedly involved in the illegal practice.

The 27 enterprises have been accused of breaking the law, targeting retirees, laid-off workers and other job seekers in Guangzhou, said Liu Yong, deputy director-general of the administration.

They used franchises, network, commission and other sales methods as covers for their operations.

Liu said that pyramid selling is not only an economic crime but also one that can lead to social unrest, such as gangsterism or cults.

"Illegal pyramid selling is still running rampant in Guangzhou and it is taking varied disguised forms," Guangzhou Vice-Mayor Wang Xiaoling said. "The municipal government will redouble its efforts to keep the illegal activities under control."

She said it will focus attention on districts such as Baiyun, Panyu, Zengcheng, Huadu, Conghua, Huizhu and Tianhe.

Wang said that ringleaders and other key figures in illegal pyramid selling of any form will be severely punished.

The municipal government encourages people to report cases of pyramid selling.

(China Daily April 25, 2003)