Home>News Center>China
       
 

Pyramid sales harm sellers, customers
By Qin Jize (China Daily)
Updated: 2004-08-17 22:31

The State Administration of Industry and Commerce Tuesday exposed 10 typical illegal pyramid sales cases, warning the public to be vigilant against the easy-money traps.

Blinded by promises of high profits, tens of thousands of people are lured onto the pyramid-selling bandwagon, the cases showed.

Over 200 college students from 13 colleges all over the country, the largest number of students ever involved, were rescued from a pyramid sales scheme in Southwest China's Chongqing Municipality in March.

The company called Oliman, which claimed to be representing a French cosmetic brand, asked each student for a 3,350 yuan (US$403) membership fee, telling them that they could make up to six times as much in three to five months by attracting more members.

Police later found that neither the company nor its cosmetic products had been legally registered.

Defrauding people through the Internet is another feature of the pyramid sale cases.

In 2003, the administration investigated and dealt with 2,253 pyramid sales cases, smashing 16,078 sales schemes involving more than 100,000 people, among which 234 cases were turned over to the judicial authorities.

Liu Jian, spokesman for the Beijing Industry and Commercial Bureau, Tuesday restated that the victims of pyramid selling are not protected by law and they are responsible for all of their losses.

Pyramid selling is a method of selling a product through a multi-level hierarchy of salespeople. It is deceptive because participants who are on a certain level in the scheme must pay money for the chance to receive the promised bonuses when the pyramid grows to another level. And the organization is most likely to sell counterfeit goods or something that does not even exist.

The pyramid will eventually reach a point where it is impossible to add new participants, causing a crash of the entire sales chain. All involved lose their investment, except the crook -- the pyramid scheme initiator and his cohorts.

"Pyramid selling is a variation of direct selling," said Ren Xinzhou, an direct-selling researcher at the State Council Development Research Centre.

Born in the United States, direct selling is the sale of a consumer product or service, person-to-person, away from a fixed retail location. These products and services are marketed to customers by independent salespeople.

But due to its natural flaws and the immaturity of China's market and its consumers, direct selling was exploited by swindlers, resulting in illegal pyramid selling when it was introduced to China in the late 1980s and early 1990s.

China imposed a ban on direct sales in 1998, saying it was hard to differentiate direct sales from so-called "pyramid sales," which had led to widespread fraud, consumer losses and social disorder.

"China is trying to clearly distinguish between valid direct selling and pyramid sales by setting down rules for direct selling," said Ren.

Under the regulations, which is drafted jointly by the Ministry of Commerce and the State Administration for Industry and Commerce, direct selling is to be strictly distinguished from the notorious pyramid selling schemes.

The draft regulation is being drawn up to fulfil China's pledge on its entry to the World Trade Organization and promote the growth of regulated direct selling, with the public being able to comment on it in September, according to Ministry of Commerce officials.

However, since 1998 when pyramid selling was prohibited in China, 10 foreign-funded direct selling companies have came to China, but had to sell their goods through retail outlets.

#



 
  Today's Top News     Top China News
 

Natural disaster affects almost 13 million

 

   
 

Official gets death for stealing relics

 

   
 

China cracks down on "phone sex" services

 

   
 

Deals strengthen Sino-Mexican ties

 

   
 

Culture chiefs seek profit in art

 

   
 

China: US sending "wrong signal" to terrorists

 

   
  China tests new guided missile - CNS report
   
  Typhoon Rananim claimed 164 lives
   
  China, DPRK diplomats meet for nuclear issue
   
  GM to begin making Cadillacs in China
   
  Controversy arises from TB vaccination
   
  Comment: Defining the 'public interest'
   
 
  Go to Another Section  
 
 
  Story Tools  
   
  News Talk  
  When will china have direct elections?  
Advertisement
         
主站蜘蛛池模板: 久久精品国产亚洲7777| 动漫无遮挡在线观看| 97精品伊人久久久大香线蕉| 日本a级视频在线播放| 亚洲国产高清美女在线观看| 精品无码一区二区三区| 国产欧美一区二区精品久久久 | 两腿之间的私密图片| 欧美一区二区三区久久综| 免费无毒A网站在线观看| 被啪羞羞视频在线观看| 国产精品va无码免费麻豆| av片在线观看| 成年人在线免费看| 久久精品无码专区免费东京热 | 特级按摩一级毛片| 四虎永久在线精品视频| 久艾草国产成人综合在线视频| 在线jyzzjyzz免费视频| 三级日本高清完整版热播| 日韩中文精品亚洲第三区| 亚洲国色天香视频| 男朋友吃我的妹妹怎么办呢 | 在线观看中文字幕第一页| 中国女人一级毛片| 日本阿v精品视频在线观看| 制服丝袜日韩欧美| 高清成人爽a毛片免费网站 | 精品久久久中文字幕二区| 国产乱妇乱子视频在播放| 国产精品久久久久久麻豆一区 | 国产精品麻豆入口| yellow日本动漫高清小说| 无码专区天天躁天天躁在线| 么公的又大又深又硬视频 | 一级特黄录像播放| 欧美日韩国产手机在线观看视频| 午夜视频在线看| 里番全彩本子库acg污妖王| 天天做天天做天天综合网| 中文字幕无线码一区二区|