Direct Selling News August 2^th(China Economic Net  Zang Yunhao) Recently,Dongsheng Group,which just got the direct selling license in 2012,has been frequently suspected of being involved in pyramid schemes.On June 5^th,a man has been investigated by Pubic Security Bureau because of involving in pyramid schemes in Jingbian County,Yulin City,Shaanxi Province,this suspect developed 120 members with the amounts about RMB2.2 million in the name of “Dongsheng Group” E-business.

On June 6^th,the Public Security Bureau of Pingan county,Haidong City,Qinghai Province has ferretted out a gang who suspected of being involved in pyramid schemes,this gang charged initial fees and developed members in the name of “Dongsheng Group” office in Haidong.

According to direct selling management information system of Commerce Department, Dongsheng Group owns direct selling authority only in Jilin district,but this company has suspected of being involved in pyramid schemes cases many times in recently years,it even boosted “buying products to present initial share” to attract members,afterwards it has been proved as “a fraud “by consumers.

Faced with so many problems,one chief of Dongsheng Group told the journalists of China Economic Net,”Dongsheng Group has no any direct seller or exists any direct selling except in direct selling areas.But it has exclusive shops and distributors in non-direct selling districts,the illegal actions above proceeded under the name of Dongsheng Group.”

One insider of direct selling industry said,”No matter the direct seller or the distributor,Dongsheng Group must enhance the management and cannot let them fraud randomly.Even if these actions can bring the growth of sales volume in short time,it will loss more than gain in the long run.”

 The pyramid schemes cases in Shaanxi and Qinghai

On June 5^th,the Public Security Bureau of Jingbian County,Yulin City,Shaanxi Province released the information that they received a report that someone has been engaged in pyramid schemes activity in a hotel room in Jingbian county.A man lectured and brainwashed the applicants in the name of “Dongsheng Group” E-business,then the police arrested all 23 pyramid sellers who has listened the lecture.Up to now,this MLM organization has developed 120 members with the amount about RMB2.2 million in Jingbian county.

Misfortunes never come singly,on June 6^th,according to the report of Qinghai News,the Administration for Industry and Commerce of Pingan County united the economic investigation team of County Public Security Bureau and Pingan police station,took measures such as secret investigation,working at a selected spot and following, discovered a den which has been suspected of being involved in pyramid schemes in the house of residential building of Pingan County Culture Bureau. 14 products of Jilin”Dongsheng Group”,2 computers,1 Newland pos machine,1 projector, 1 air cleaner and kinds of propaganda materials and display boards have been seized at the scene.

As introduced by a staff of the Administration for Industry and Commerce in Pingan County, the party Yuan X has rent a house in residential building of Pingan County Culture Bureau,in the name of “Dongsheng Group” office in Haidong,under the banner of direct selling the products of Dongsheng Biological Engineering Group,to develop members on the conditions of getting membership by purchasing a set of products with the floor price RMB1300 and enjoying 70% discount preferential price,then to conduct propaganda training.Because his actions have been suspected of being involved in pyramid schemes,the above articles have also been detained as per the law.Now the case is still under further investigation.

The journalists of China Economic Net checked the direct selling industry information system of Commerce Department and found that Dongsheng Group has got the direct selling license in December,2012 with the direct selling areas all in Jilin including 1 province(area,city),7 cities(state)and 25 areas(county).

In the words,Dongsheng Group has direct selling authority only in partial areas of Jilin province,Qinghai,Shaanxi and other provinces or cities which mentioned in the above case cannot take part in direct selling.

For this,the journalists of China Economic Net called Dongsheng Group,one chief of Dongsheng Group told the journalists,”Dongsheng Group has no any direct seller or exists any direct selling except in direct selling areas.But it has exclusive shops and distributors in non-direct selling districts,the illegal actions above proceeded under the name of Dongsheng Group.”

Once boosting of