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Illegal pyramid selling undercurrent surges before the promulgation of the direct selling law


http://finance.sina.com.cn 11:18, August 24, 2005 Nan Fang Daily

The reporter of the Japan Daily recently received a report from a reader, which reflected that there was an Agel direct selling company on the Internet, which called itself "the world's first direct selling company", and recruited civil servants to engage in business in Guangzhou, Shenzhen and other places.

To this end, the reporter made a further investigation and found that things are far more than that simple.

Industry insiders believe that the government is currently formulating relevant direct marketing laws and regulations to regulate the direct marketing market to be opened
Under the name of "China is about to open the direct marketing market", illegal and illegal organizations rose up and took the opportunity to carry out illegal operations.

According to the latest news, among the two core documents of the new direct marketing law, the Draft Regulations on the Prohibition of Pyramid Marketing (draft), which is used to regulate the industry, will be issued earlier than the Draft Regulations on the Administration of Direct Marketing (draft), which opens the direct marketing market. This is an expression of the government's determination to strictly regulate the market.

In fact, the government began to formulate

Direct selling method The attitude of regulation has been very clear, which is to open a strictly governed direct marketing market with Chinese characteristics. In other words, reopening the direct selling market closed since 1998 does not mean completely adopting the "multi-level" and high commission distribution model adopted by some foreign direct selling enterprises.

   Civil servants and teaching staff are welcome

With the introduction of insiders, the reporter, as an on-the-job civil servant, contacted a direct seller of Aijia who called herself "Rongjie" by telephone. After learning the identity of the civil servant, the "Rong Jie" immediately stated that she was also a civil servant of a water conservancy bureau in a city in Shandong Province, and told reporters that many civil servants began to engage in direct marketing business of Love Home, so that reporters should not worry too much. At the same time, she introduced another direct seller who works in Guangdong and is called "Brother Feng" to the reporter.

"Brother Feng" told the reporter that the direct salesperson of civil servants who make love is OK, which is one of the ways to increase "legal income". As long as you don't tell anyone, you don't have to worry that someone will know. In order to appease the reporters, he also said that although he was the principal of a training school, he was also having sex.

After 1998, the mainland of China cut across the board for direct marketing and pyramid selling. Only ten enterprises such as Amway and Avon are allowed to carry out business in the mainland in the form of "store+salesman", and Aijia is not included. The upcoming Regulations on the Administration of Direct Selling (draft) also clearly stipulates that civil servants and teaching staff are expressly prohibited from engaging in direct selling business activities. At the same time, according to the current Interim Regulations on National Civil Servants and the Civil Servant Law to be implemented next year, civil servants cannot engage in profit-making business activities.

After recommendation, the reporter joined a so-called "Oumai International Team". Later, it was learned that Aijia, which carried out activities in China, quickly infiltrated into Guangdong after being registered in Hong Kong, and in just half a month, its business scope has expanded to Beijing, Shandong, Hunan, Gansu and other provinces. The number of people involved in a certain scale of training meetings has reached more than 26000, and civil servants, faculty and other staff have accounted for a certain proportion.

   The proportion of team remuneration and commission is up to 50%

From the "AGEL Greater China Bonus System" obtained by the Oumai International team, the reporter saw that "the company pays various bonuses and dividends to members up to 50% of the total performance". In other words, the commission ratio paid by Aijia to members is as high as 50% (while the "Regulations" stipulate that the commission ratio shall not exceed 30%). It is understood that Amway, as a leader in the direct selling industry, claims that the commission ratio of its business in China is only about 30%. Some people in the industry commented that Aijia is making use of the transitional period before the promulgation and implementation of the Regulations to generate money crazily.

This bonus system can be described as "complicated". It is divided into six remuneration methods: recommendation bonus, global performance bonus, team performance bonus, pole matching bonus, team performance bonus and leader bonus. However, the seemingly complicated bonus system is nothing more than based on the team remuneration model, and the commission distribution is determined according to the number of development levels, team performance, and the number of development employees.

At the same time, the bonus system did not use too much words to explain how to obtain commissions through sales, but more encouraged members to join the association through "leading", referrals, and establish the so-called "business center" to obtain high commissions. One of them is called "recommendation bonus", which is to encourage members to get bonus directly by introducing people to join the club.

In addition, according to "Sister Rong", as Aijia has just started in China, the team officially started operation in the first ten days of August, so there is no stock in mainland China. To join, you must pay for the order first, and recommend at least one person to join.

The first thing is no goods, the second thing is to recommend people. It is self-evident what kind of medicine is sold in Aijia Hulu, which claims to be "the world's first direct selling company".

   Direct selling? Or pyramid selling?

According to the reporter's contact with Aijia, the company is a direct selling enterprise under ASH CAPITAL. After preliminary investigation, the reporter found that ASH CATITAL is a fund company in the United States. The company's US headquarters said that it had not registered such a direct selling company in Hong Kong, and the headquarters did not know of the existence of such a company.

At the same time, a person familiar with the matter in Shenzhen said that Aijia, who claimed to have registered a company in Taiwan, had not actually registered with the relevant authorities, and was a fake company. Now, many relatives and friends around us have been drawn into Aijia. Its scale of development is very rapid, and various training meetings are held regularly, but no products have appeared yet.

Aijia, who did not originally have the ability to carry out direct marketing business in the mainland of China, was suspected of illegal operations when it "smuggled" into China to carry out direct marketing business. Now it is recruiting civil servants and teaching staff to join the association, which will undoubtedly disrupt the open direct marketing market.

Liu Zhong, a senior lawyer in the direct marketing industry, analyzed that without any goods, he had obtained a large amount of money through ordering orders, holding training meetings, donations and other forms, which obviously has the nature of pyramid selling and is a typical "rat club". If the investigation is true, Aijia will not only violate the upcoming Regulations on the Administration of Direct Selling (draft) and the Regulations on the Prohibition of Pyramid Selling (draft), but also be suspected of illegal pyramid selling, tax evasion, illegal business and other crimes.

As of the press release, some members of Aijia told the reporter that they had not received the ordered products, had never seen or used these products, but they still believed that the goods would be delivered to the mainland in the near future, and were constantly developing offline.


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