Hebei Jinxiangfu wine industry is suspected of pyramid schemes
[Direct Reporting Network Beijing November 1st] (China Food News) In order to effectively strengthen the supervision of dealers and various business entities that distribute direct selling products, the State Administration of Markets has officially issued the "Regulations on Further Strengthening Direct Sales Supervision and Management". Opinions on work. The opinion clearly states that the local industrial and commercial and market supervision departments should make full use of various supervision means to urge enterprises within their jurisdiction to engage in direct selling activities, not to exaggerate false propaganda on products, and not to engage in commercial propaganda and sales promotion activities in the name of direct selling companies. Do not organize or participate in pyramid schemes. The reporter continued to receive readers broke the news, saying that Hebei Jinxiangfu Wine Co., Ltd. carried out "direct sales" activities in the name of paying membership fees and dividends. In this regard, the reporter conducted an unannounced visit.
According to the address provided by the reporter, the reporter went to Jinxiangfu Wine Co., Ltd., located in Zanhuang County, Shijiazhuang City, Hebei Province, in the name of a product agent. The staff of the company's "Professional Store Management Department" said after understanding the reporter's intention: "The company is of direct sales nature, and there must be recommended talents to do business within the company." According to the introduction of the staff, after being recommended by the recommender, the company must pay the membership fee of one of the four levels of 2,500, 5,000, 10,000, and 20,000 to formally become a member of the company, and then qualify to develop the new line. member. In addition to the commission of the goods, the fees paid by the new members of the development will also have a certain percentage of dividends.
"If you pay a membership fee of 20,000 yuan, you can authorize a shop with a price of 80,000 yuan to receive a product worth 240,000 yuan. You can enjoy a 60% discount on the price of the second purchase." The staff added. Subsequently, the staff introduced a sales representative of the company to the reporter, saying that he can be a referee of the reporter.
After several twists and turns, the reporter saw the sales director of the surname Wang in an office building in downtown Shijiazhuang. Upon meeting, the sales director introduced the company's products to the reporter and the effects after taking it. He took out a box of Jiufukang's concentrated extract of concentrated jujube bitter gourd, which was made by Jiuwei Biotechnology. He said: "This product contains a substance that can repair and regenerate regenerative cells, delay human aging, anti-cancer, anti-tumor ."
According to its introduction, Jinxiangfu wine industry is a subsidiary of Jiuwei Biological, which integrates planting, research and development, production and sales into an industrial chain. The company's products include extracts, jujube flavored liquor and jujube flavored red wine, all of which have the "functionality" of regulating sleep and lowering blood sugar. This member sales model has been done for more than two years, and currently there are thousands of members. If you want to open a store, you must be a member to qualify, and an ordinary member (paying less than 10,000 yuan) can only take the market and pull the head.
Subsequently, Director Wang took the reporter into another room with a blackboard to introduce the company's operating model to the reporter. “Members are divided into 2,500, 5,000, 10,000, and 20,000 yuan. The members who are drawn are divided into 10%, 11%, 13%, and 15% respectively. As the name suggests, the more members you get, the more you earn. There are also various awards such as management awards, which will be commissioned and distributed according to different levels." According to it, the company's direct sales model implements a dual-track membership system. Each member is divided into two areas, namely, the A and B areas, which are multiplied and have an umbrella structure. The absorbed members are in two units. For example, 100,000 yuan is completed on each side, and 15% of the dividends can be drawn, that is, 15,000. In other words, members can absorb new members and take such a model. In this way, the company is not losing money, and everyone can earn money.
Finally, Mr. Wang also provided the reporter with a product price list and several advertisements, in which the retail price and membership price of each product were clearly separated in the price list. Take the jujube multi-energy extract as an example, the specification is five packs per box, the retail price is 500/box, and the member price is 250 yuan/box. Gongzao three steamed 45-degree liquor, the specification is 6 bottles / piece, the retail price is 3,000 yuan / piece, the member price is 1,500 yuan / piece and so on. The efficacy of the various extracts is also detailed in the advertising leaflet, which details the ingredients and efficacy of the various extracts. For example, jujube in jujube multi-energy extract has the effects of replenishing spleen and stomach, moistening heart and lung, lowering blood pressure, regulating blood fat, delaying aging, etc., and retains all the nutritional value and medicinal value of jujube. In addition, the role of red jujube dry red wine is: qi and nourishing blood, soothe the nerves, can regulate chronic stomach disease, stomach pain, stomach cold, can dilate blood vessels, dye blood vessels and clean up the toxins in the blood.
Article 7 of China's "Prohibition of Pyramid Sale Regulations" stipulates: (1) The organizer or operator shall, through the development of personnel, require the development personnel to develop the participation of other personnel, and calculate and on the basis of the number of personnel directly or indirectly rolling development of the development personnel. Remuneration (including material rewards and other economic benefits, the same below), to obtain illegal benefits; (2) organizers or operators through the development of personnel, require the development personnel to pay fees or to pay for the goods in the form of subscription, etc. Or develop the qualifications of other personnel to join, and obtain illegal benefits; (3) Organizers or operators through development personnel, require the development personnel to develop other personnel to join, forming a relationship between the upper and lower lines, the sales performance of the following lines is calculated and paid online. Remuneration, for illegal gains. All belong to the category of pyramid schemes.
According to Article 7 of the Interim Provisions on Food Advertisements, food advertisements must not appear to be confused with drugs. They should not directly or indirectly promote the therapeutic effect, nor should they promote the role of certain ingredients to express or imply the therapeutic effect of the food. Article 13 stipulates that advertisements for ordinary foods, new resource foods, and special nutritional products may not promote health care functions, nor may they express or imply their health effects by promoting the role of certain ingredients.
Relevant legal persons told reporters that Jinxiangfu Wine Co., Ltd. did not obtain direct sales license, but engaged in marketing activities in direct sales mode, and exaggerated and induced publicity of products in the sales process, in accordance with the Direct Selling Regulations and other relevant The regulations are illegal business operations, and the industry and commerce and public security organs will investigate and deal with them according to law.
In response, the reporter reported to the Zanhuang County Market Supervision Administration. The team leader of the Bureau of Industry and Commerce and Economics, Liang, said that he would investigate the matter and report to the higher authorities. As of press time, the reporter received a reply from the team leader: "The company's product promotion is exaggerated, but did not find direct selling behavior." The person in charge of the office of the higher-level unit Shijiazhuang City Administration for Industry and Commerce told the reporter: I have never received any relevant case information from the Zhanhuang County Administration for Industry and Commerce, and I don’t know about it.
For the progress of this matter, our reporter will continue to follow.