Caixin
Caixin Global – Latest China News & Headlines

Home >

TRENDING
Honor of Kings Beats PUBG Mobile as World’s Highest-Earning Mobile Game in March
Didi Reportedly Looking to List in U.S. as Soon as July
China’s NEV Sales Balloon in First Quarter on Strong Demand from Individual Consumers
LATEST
Medtech Startup StoneWise Raises $100 Million to Promote Use of AI in Drug Development
Plus Accelerates Uptake of its Autonomous Truck Tech with Italian IVECO Deal
Trending in China: Farmer Given Suspended Jail Time For Felling Own Trees – Social Media Chimes In
‘Tickets Please!’ Baidu Allowed to Charge for Robobus Service in Chongqing
Didi Reportedly Looking to List in U.S. as Soon as July
China’s NEV Sales Balloon in First Quarter on Strong Demand from Individual Consumers
Honor of Kings Beats PUBG Mobile as World’s Highest-Earning Mobile Game in March
Didi to Expand New Logistics Service From 8 to 19 Cities in China
China’s Li Auto Raises $750 Million Through Bond Sale to Fund Electric Car Development
Plant-Based Food Firm Beyond Meat to Open Plant Based in China
iFlyTek Hopes to Cash in on Pandemic Driven Demand for AI Services and Devices
Joint Alibaba and Russian Online Retailer AliExpress Plans IPO as Early as 2022: Report
Trending in China: ‘Easy to Buy, Hard to Redeem’ – Airline Pandemic Related Coupons Under Fire
Tesla Counters Spying Concerns Saying Car Cameras Not Activated Outside North America
Reinventing In-Car CB Radio or Cutting-Edge Tech? Clubhouse-Like Features Built into Xpeng Cars
Smart Projector and Laser TV Startup Xgimi Predicts Big Profits
Trending in China: Speculators or Trading Apps — Who’s to Blame for $7,000 Sneakers?
Nio and Xpeng Both Set Quarterly Records But Still Lag Behind Tesla
Call of Duty Mobile Developer Outplays Games Publisher as Timi Studio Earns More Than Activision Blizzard
TSMC to Beef Up Chip Production Capacity with $100 Billion Investment Plan

By Denise Jia / Feb 15, 2019 07:42 AM / Business & Tech

Photo: VCG

Photo: VCG

Chinese authorities suspended the registration and approval of direct selling amid a nationwide crackdown on wrongdoing in the health products market.

The Ministry of Commerce will establish a “blacklist” of untrustworthy direct selling companies and participants, ministry spokesperson Gao Feng said Thursday at a routine press conference.

The move came after probes and crackdowns on several large-scale health products direct selling groups following consumer complaints of exaggerated advertisements and questionable products that could even hurt people’s health.

Local authorities in Guangzhou, Guangdong province, are investigating LKK Health Products Group, one of the country’s biggest direct-selling companies with “Infinitus” as its core brand, following allegations that its products damaged a toddler's heart.

Last month, police also arrested 18 people in a probe into Tianjin-based Quanjian Nature Medicine Technology Development Co. Ltd. over allegations that the group was running a pyramid scheme and exaggerated advertisements that may have attributed to the death of a young girl.

Currently there are nine companies operating in China with direct selling licenses. The exposure of questionable practices by Quanjian and other direct selling companies have raised a public outcry over the vast but under-regulated industry.

Gao said the Ministry of Commerce would conduct a thorough, nationwide sweep of the direct selling industry and will take actions against any illegal businesses.

Related: Inside Quanjian: The Alleged Pyramid Scheme Blamed for a Toddler's Death

Share this article
Open WeChat and scan the QR code