"The people of Quanjian came to me and said that they are willing to pay a high price. Let us give Bao Shuhui a bail pending trial, and even ask for a sinless defense." A law firm in Beijing said to Zhongxin Jingwei, "We have no one." Will pick up their case."
Since the criminal detention of 18 criminal suspects, including Shu Qianhui, on January 7th, “Qian Jian” has become a hot potato, and many law firms have avoided it.
Text | Gao Xiaotong
01 Three sins of the "power empire"
On December 25, 2018, an article entitled "The Ten Thousands of Health Empires and the Chinese Family in the Shadows" of the Lilac Garden smashed the circle of friends. The article described a cancer girl named "Zhou Yang" at the beginning. After normal treatment, the condition improved. However, because the family listened to the propaganda of the right to health, the treatment of the right health products caused the disease to deteriorate and eventually passed away.
On December 27th, the Tianjin Municipal People's Government Information Office issued a message saying that the Tianjin Municipal Government attached great importance to this matter and has instructed the relevant departments to set up a joint investigation team to investigate and verify many issues of concern to netizens. One day later, Tianjin Vice Mayor Kang Yi also publicly stated that “after preliminary verification, some products of Tianjin Quanjian Company are suspected of exaggerating propaganda issues.”
With the continuous fermentation of the "quantity incident", on the New Year's Day of 2019, the Tianjin police officers did not have time to take a vacation, and they filed a lawsuit against Quan Jian Natural Medicine Technology Development Co., Ltd. for allegedly organizing and leading the crime of pyramid schemes and false advertising. . Seven days later, 18 suspects such as Liang Moumou, the chairman of Quanjian, were detained in criminal detention.
The once-billion-dollar "direct selling" empire fell into the altar in just over a dozen days. "Get out of the mix, come back sooner or later." This infernal classic line was used by netizens in Shu Huihui and his "power empire".
▲ Chairman of Quanjian Source: Quanjian official website
Zhong Fenfang, a partner of Zhongwen Law Firm, told Zhongxin Jingwei that the current three problems of Quan Jian are: direct marketing of direct sales into pyramid schemes, suspected of pyramid schemes; second, false propaganda, exaggerating efficacy, suspected of false advertising; Deceive consumers with the guise of Chinese medicine, involving illegal medical practice. However, the specific ruling will also depend on the post-trial decision.
Zeng Jie, a lawyer of Guangqiang Law Firm, said that the maximum penalty for the crime of suspected organization and leadership of pyramid schemes in the official circular was 15 years in prison. Since Quan Jian is currently being filed by the police in the form of a unit, criminals who are only assigned to labor services by the unit are generally not held criminally liable.
It is worth noting that Zhongxin Jingwei inquired about the direct sales industry management platform of the Ministry of Commerce and found that Quanjian Natural Medicine Technology Development Co., Ltd. had obtained the Direct Sales License on August 7, 2013.
According to the provisions of Article 7 of the Direct Selling Regulations revised in 2017, the conditions for applying for becoming a direct selling enterprise include that the investor has a good business reputation and has no major illegal business records for five consecutive years before the application is filed; foreign investment The applicant shall also have more than 3 years of experience in direct marketing activities outside China; the paid-in registered capital shall not be less than RMB 80 million; in accordance with the provisions of these Regulations, the designated bank shall pay the full amount of the deposit; in accordance with the provisions, information reporting and disclosure shall be established. system.
In this regard, Chi Fenfang said to Zhongxin Jingwei that the approval requirements for direct sales licenses are very loose, and there are no hard and technical thresholds and requirements.
Yin Bo, an associate professor at the Institute of Criminal Law Science at Beijing Normal University, said, "Even if there is a direct sales license, if it is essentially a fee for the people, it is not a simple team compensation, but it is still a crime. Direct sales licenses are not a shield for pyramid schemes."
“The companies that make direct sales into pyramid schemes are not just Quanjian,” said Chi Fenfang. “The current direct selling companies are moving toward MLM.”
02Can the Tiens under "Inbreeding" be safe?
In the investigation, Zhongxin Jingwei found that in addition to Quanjian, Tianjin has a number of direct selling companies such as Jinshili, Kangting and Shanghe. Among them, Tianjin Tianshi Group, the chairman of Quanjian, has been the largest one. . And in this storm, can Tiens Group retreat?
▲ Tiens core products Source: Tiens official website
In the media reports, Li Jinyuan, the chairman of Tiens Group, is very high-profile in daily practice. In 2016, Li Jinyuan was ranked 32nd on the Hurun Report with 40 billion yuan. In 2015, he traveled to France with more than 6,400 people and spent 13 million euros, including more than 4,760 rooms and 146 short-distance buses in more than 140 hotels. In the parade's ranks, Li Jinyuan took the jeep “review” staff to line up and more than 70 World War II antique cars followed.
Behind the high profits, there are countless people who are paying for their tears. According to the statistics of the China Judgment Document Network, since 2009, the pyramid schemes carried out in the name of “Tianjin Tiens” have led to 2,78 cases of criminal cases, except for cases convicted of “organization and leadership of pyramid schemes”. Other cases are mainly illegal detention. Intentional injury, robbery, negligent death, intentional murder, etc., caused a total of 155 deaths. In December 2018, the police in Nantong City, Jiangsu Province, after more than five months of investigation, successfully cracked a mega-illegal pyramid scheme and smashed six pyramid schemes that counterfeited “Tianjin Tiens”.
However, these did not hinder the rapid development of Tiens. According to the "Top 20 Chinese Private Enterprises in 2018" released by the National Federation of Industry and Commerce, Tiens Group Co., Ltd. ranked 214th and ranked third among Tianjin private enterprises. At present, Tiens' business has spread to more than 190 countries around the world, and established branches in 110 countries and regions.
After the Quanjian incident, the Tianjin Municipal Market Supervision Committee and the Municipal Party Committee Political and Legal Committee and the Municipal Health and Health Commission and other 10 departments launched a three-month crackdown on the rectification and rectification of health care products. Wang Weiwei, a partner of Zhongwen Law Firm, told Zhongxin Jingwei that the scope of this special rectification campaign is very wide, but it may be difficult to implement it. He believes that Tianjin should focus its efforts on rectifying power to investigate local direct sales companies and other MLM organizations.
The drawbacks of "re-approval, light supervision" are revealed
In addition to Quanjian and Tiens, there are also some direct sales organizations that are not in Tianjin and are still alive and kicking.
Why exaggerate publicity and pyramid schemes in the health care products industry is always "wild fire, the spring breeze is born again"?
Liu Xuecong, secretary general of the China Nutrition and Health Food Association, said in an interview with Zhongxin Jingwei that the current consumption expenditure of urban and rural residents in China is growing at a rate of 15%-30%, much higher than the growth rate of 13% in developed countries. The health care products industry provides a broad space for development.
At the same time, he believes that the development of China's health care products industry is relatively short, and Chinese enterprises are still in the process of marketing-oriented development. The emphasis on brand packaging is relatively weak, so everyone is more concerned about how to obtain economic benefits faster. I don't care much about brand building.
In Wang Weiwei's view, not only the health care products industry, but also the supervision of the entire food and drug category has such problems. This is fundamentally caused by China's traditional thinking of “re-approval and light supervision” of health food management. He said that the reality is that the state has set a lot of standards to ensure that enterprises put more energy into the approval and qualification, and once the company gets the "admission ticket", it will be slack, the quality of the product, the efficacy Problems and false propaganda problems naturally follow. Therefore, in order to cure the hardships of health care product supervision, the situation of “re-approval and light supervision” must be completely broken.
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