[Direct Press Beijing, May 16,] (US Trading Company) Recently, China Industrial and Commercial News Network released "Guangdong Province's first investigation of illegal direct sales orders from provincial bureaus. A branch of a daily necessities company in Guangdong was infringed by direct sales. Was fined 10.4 million yuan." According to the data, the Guangdong Provincial Administration for Industry and Commerce conducted a check on a Guangdong branch of a daily necessities company on June 28, 2016. It was found that the parties were organizing personnel training. There were some training materials, meeting materials, business information, sales vouchers and parts at the scene. Indirect products. On the same day, the Bureau initiated investigations on the parties. According to insiders, the penalty was Shaklee.

 

Shaklee, founded in 1956 in San Francisco, USA. In 2005, Shaklee (China) Commodity Co., Ltd. was registered and established in Beijing. In 2007, it received a direct sales license approved by the Ministry of Commerce. Shaklee mainly sells health care products, cosmetics, household cleaning products and other products, claiming to be the United States ranked first in natural nutritional products company. However, it is such a direct-viewing company that looks like “scenery”, in addition to exaggerating the effectiveness of promotional products, it is even embroiled in a murder turmoil.

 

Exaggerated propaganda not only, but also become "revenue soup"

 

Drinking red wine can delay aging, and drinking a bottle of VIVIX is equivalent to 3,000 glasses of wine. This is the product description of Shaklee's star product VIVIX. Shaklee claims that VIVIX has the effect of “improve immune function, prevent cancer and fight cancer; activate long-lived genes and slow down cell aging”. In addition, Shaklee also has a lot of videos about Shaklee's real case sharing. These cases were nothing more than those who had cancer and were seriously ill and were all cured after taking VIVIX, and the treatment effect was immediate. So does this seemingly "imperious" panacea really propaganda?

 

In fact, the media had previously reported receiving complaints from multiple consumers saying that they had spent tens of thousands of dollars to purchase Shaklee products. However, they did not see any effect. Some consumers even experienced panic, shortness of breath and dizziness after taking the product. Dizziness and other symptoms. Shaklee's “direct sales” staff said that this is a manifestation of the underlying disease that is slowly emerging and the body is improving. Experts have denied this claim and stated that VIVIX does not have a role as a health care product. Among the 18 functions of health food products that China allows, only the role of blood lipids, blood sugar, and antioxidants is assisted, and there is no protection against it. Cancer, anti-cancer effect.

 

However, exaggerated publicity has not stopped, and consumers have died after eating the product.

 

On August 5, 2015, consumer Li Xiaoping purchased Shaklee's products, which included Shaklik Weiss Complex Fruit and Vegetable Juice Drink (VIVIX). After taking the product, Li Xiaoping died on August 9, 2015. Afterwards, after the Jinsha Judicial Appraisal Institute of Sichuan Province identified, the death of Li Xiaoping taking the Jiakang Liwei Wei Si compound fruit and vegetable juice beverage (VIVIX) participation in the death outcome was 25%.

 

According to the first paragraph of Article 18 of the "Law on Tort Liability of the People's Republic of China", the first paragraph of Article 43 and the "Interpretation of Several Issues Concerning the Application of Law of the Supreme People's Court on the Trial of Personal Injury Compensation", Article 17 and 10 Article 8, Article 22, Article 27, Article 28, Article 29, Article 35, Defendants Jiakangli (China) Commodity Co., Ltd., and Shaklee (China) Limited Daily Necessities The company’s Sichuan branch was sentenced by the court to compensate the plaintiff’s family for an amount of RMB 206,737.

 

Repeatedly suspected of MLM

 

In fact, Shaklee was repeatedly exposed to suspected illegal pyramid schemes.

 

According to public information, to become a distributor of Shaklee, you must first spend 60 yuan to make a card, and you can become a qualified dealer by purchasing 20,000 yuan from your pocket. In accordance with the number of developments, Shaklee has divided its dealers into nine levels, middle level, high level, and special level. After becoming a distributor of Shaklee, in addition to obtaining sales dividends of 4% to 20%, distributors can also set up their own teams. The more downlines they develop, the more rewards they receive. Shaklee's direct sales team implements a point system (PV), which equals 80 PV for every 100 yuan. Its direct sales bonus distribution system includes 20% retail profit, 30% performance bonus, 3% management bonus, 2% bonus bonus, and 10% standard bonus. Some dealers once claimed that as long as two people are employed, they can earn more than 10,000 yuan each month. The development of nine special three-monthly performance bonuses can reach 200,000 yuan.

 

Obviously, Shaklee's model conforms to the three basic characteristics of MLM: one is to collect entry fees, the other is to pull the head model, and the third is based on the direct or indirect development of the number of personnel based on remuneration. Therefore, Shaklee is considered to be a MLM organization.

 

In April of last year, the Public Security Bureau of Yueqing City, Wenzhou City, Zhejiang Province destroyed a large-scale pyramid sales base organized by Shaklee dealers. According to statistics, the amount involved has reached nearly 40 million yuan. In addition, Shaklee was punished by Chaoyang branch of the Beijing Administration for Industry and Commerce for administrative penalties in 2016 for violating Article 42 of the Direct Selling Regulations.

 

(Note: Article 42 If a direct selling company violates the provisions and exceeds the scope of direct selling products and engages in direct selling business activities, the administrative department for industry and commerce shall order it to make corrections, confiscate direct sales products and illegal sales revenue, and impose a fine of 50,000 yuan up to 300,000 yuan. Where the circumstances are serious, a fine of not less than 300,000 yuan but not more than 500,000 yuan shall be imposed, and the administrative department of industry and commerce shall revoke the business license of the branch company of the direct selling enterprise that has violated the lawful business operations until the competent commercial authority of the State Council revokes the direct selling business license of the direct selling enterprise. )

 

Even if it was repeatedly reported that the illegal pyramid schemes were suspected, Shaklee still made a lot of money. According to the data, Shaklee’s performance in 2011 exceeded RMB 1 billion, and in 2014 it reached RMB 3 billion. Shaklee's case actually reflects the current chaos in the entire direct selling industry. Enterprises and direct sellers try to drill through legal loopholes, swim on the edge of “MLM”, and hold an unrealistic “dream of getting rich” with a fluke, and in the end can only harm others.