Criminological analysis of pyramid companies phenomenon

The Pyramid Companies phenomenon with its very own destructive effect has emerged in Iran under the pretense of network marketing and electronic trading development. In 2005, during the process of criminalisation of these businesses, a single article was added to the Penal Code for those who Disrupt The Economic System. However, the increase in the number of cases, revealed that this article did not work effectively. Therefore, paying attention to the understanding of the reasons and applying non-criminal reactions seem necessary. Individual factors such as greed, the lack of knowledge, the desire of becoming independent and earning more money together with problems arising out of a business environment with no sense of economical security will cause such crimes. Economical and social system factors such as unemployment, the lack of meritocracy will also eventually lead to such criminal offense. Respecting the economical and social rights of people in the society, training them and developing the culture for improving the individual personality in the form of Social Prevention, supporting the network marketing and consumers rights in the form of Situational Prevention are those non-criminal approaches that can be useful.