On July 12, the second instance of the case of producing and selling fake and inferior cosmetics sentenced 14 defendants and two defendant units to prison for the crime of producing and selling fake and inferior products. Duan Nian (alias) and Li Zhiming (alias) were both sentenced to seven yearsimprisonment and a fine of 250,000 yuan.
In view of the loopholes in cosmetics supervision exposed in this case, the Peoples Procuratorate of Xinghua City issued procuratorial suggestions to the market supervision and management department on August 1, suggesting that the supervision of the beauty industry should be strengthened to effectively protect consumershealth and safety.
Unexpected whitening effect
Although it has passed puberty, acne still resides on her face, which adds a lot of trouble to Ms. Wang. In November 2017, Ms. Wang came to a traditional Chinese medicine beauty salon in Xinghua City on the recommendation of her friends, and put forward the demand for acne removal.
The boss of the beauty salon immediately promised to recommend a set of Chinese medicine hall beauty cosmetics, which includes not only acne removing water, acne free printing cream, facial cleanser, but also a fairer water with a whitening effect. Since then, Ms. Wang has insisted on doing beauty every day.
Half a month later, Ms. Wangs face was indeed much less acne. At the suggestion of the beautician, Ms. Wang changed to two-day cosmetology, and bought a set of traditional Chinese medicine hall cosmetics for home use.
Unexpectedly, after several times of use, Ms. Wangs face began to be allergic, and then her whole body began to swell. On February 4, 2018, Ms. Wang went to Jiangsu Traditional Chinese Medicine Hospital to detect nephropathy, which was caused by mercury poisoning. During this period, she was sent to ICU for rescue for half a month. Subsequently, Ms. Wang chose to call the police.
On March 3, 2018, Taizhou Food and Drug Administration, together with Xinghua Public Security Bureau, inspected the beauty shops involved, seized and tested the cosmetics. The results were astonishing. The State decrees that mercury should not be added to cosmetics more than 1 mg/kg, while the mercury content of TCM Hall cosmetics reaches 2193 mg/kg to 13448 mg/kg.
As the case is serious, the area involved in the sale of fake and inferior cosmetics involves nearly 20 provinces and municipalities, such as Jiangsu and Liaoning. On May 23, 2018, the State Administration of Market Supervision and Administration dispatched special personnel to supervise the case.
Production and sale of whitening cosmetics
Police investigation found that the series of cosmetics of Traditional Chinese Medicine Hall which caused Ms. Wangs mercury poisoning were sold to beauty parlors layer by layer, and the final source was Guangzhou Xuebao Biological Technology Co., Ltd (hereinafter referred to as Xuebao Company).
Duan Nian, a 30-year-old University graduate, has been in the cosmetics sales industry for several years. In January 2016, he registered Hong Kong Yilin Biotechnology Company (hereinafter referred to as Yilin Company) in Hong Kong and actually managed cosmetics sales in Guangzhou.
In July 2016, Duan Nian met Li Zhiming, a chemical engineer, and they jointly invested in the registration of Xuanbao Company.
On the surface, Xuanbao Company obtains business license and cosmetics production license according to law, but besides legal business, Duan Nian and Li Zhiming also secretly agreed on a dark way for the production and sale of whitening cosmetics.
Adding mercury to cosmetics can increase whitening effect, which is a well-known industry latent rule. Li Zhiming is a professional who is skilled in adding technology. After consultation, Li Zhiming is responsible for the development and production of semi-finished products, while Duan Nian is responsible for the packaging and sales of products.
According to the indictment, Li Zhimings wife, Yangmou, is nominally a quality inspector of Ruibao Company. In fact, she is responsible for collecting Lifepowder (Aminomercuric Chloride). In 2015, Ouyang, who works with Li Zhiming, is responsible for adding Lifepowder to the semi-finished products of emulsified cosmetics. In addition, two people were appointed according to Duan Nian to fill, pack and ship.
From October 2016 to April 2018, frost No. 1 and frost No. 3 added to the mysterious Lifang were produced in the workshop of an abandoned factory in Dalang Town, Baiyun District, Guangzhou, and then filled into delicate small bottles, packaged into different brands for sale.
As whitening works quickly, it is immediately sought after by customers and beauty parlors, and the order volume has risen sharply. Among them, Bailin Company sells such brands as Baidaifu, Yan Qingxin, Camilla and so on.
In the market development, Duan Nian has made great efforts, because this three nothingness cosmetics can not be sold on shelves through regular channels, product sales are positioned in beauty parlors.
So he hired a group of young girls, trained to become beauty instructors, sent them to various provinces and municipalities to train agents and beauty parlors and recommend products. If you can sell the product, you can get a 3% commission.
The companys internal division of labor is also quite fine, with administrative department, operation department, sales department, design department, finance department and other departments.
After the incident, 50 cosmetics inspection reports were extracted from Guo Mous computer, the head of the design department. After testing, only 3 copies were true, and the remaining 47 copies were forged.
In addition to selling finished products, Duan Nian and Li Zhiming also sold frost No. 1 and No. 3 directly to Wu Mou and many other offline companies. Among them, Wu Mou and others used their own Chongqing Minghao Cosmetics Company (hereinafter referred to as Chongqing Minghao Company) to commit unit crimes.
Strengthen the Supervision of the Mysterious Kingdom of Cosmetics Consumption
As the case is serious, the number of criminals is large, and the internal division of labor is complex, the Peoples Procuratorate of Xinghua City immediately dispatched personnel to intervene, set up a case handling team, and guide the public security organs to investigate and obtain evidence. On May 25, 2018, the procuratorial organs arrested eight suspects, such as Duan Nian and Li Zhiming, according to law for the crime of producing and selling fake and inferior products.
In the process of in-depth examination of the case, the prosecutor also found that Xuanbao Company was suspected of unit crime, and immediately issued to the public security organs a Notice Requiring Explanation of the Reasons for Not Filing a Case to supervise the filing of a case.
On December 31, 2018, the procuratorate prosecuted 14 defendants, including Duan Nian, Li Zhiming and Xuanbao Company, for the crime of producing and selling fake and inferior products to the Peoples Court of Xinghua City.
The procuratorial organ accused the company of impersonating qualified products with unqualified products and selling more than 500,000 yuan. Duan Nian, Li Zhiming and other personnel directly in charge of the unit are the principal offenders; Yangmou, Ouyang Mou, Sun Mou and others help produce and sell unqualified products, are the accomplices.
On March 26, 2019, Xinghua Peoples Court rendered a first instance judgment on the case. The judgment adopted the prosecutions accusations and sentenced Duan Nian and Li Zhiming respectively to seven yearsimprisonment and a fine of 250,000 yuan for the crime of producing and selling fake and inferior products, and Yangmou and others with the statutory circumstances of lenient punishment such as accomplice and confession were sentenced to suspended sentences and fines respectively. Among the two defendants, Ruibao Company was fined 500,000 yuan and Chongqing Minghao Company was fined 250,000 yuan.
Duan Nian and Li Zhiming appealed against the first instance decision. On July 12, the second instance of Taizhou Intermediate Peoples Court upheld the original judgment.
In handling the case, the prosecutor found that cosmetics sales were divided into daily chemical line and professional line. The former mainly aimed at the retail market, mainly Department stores, supermarkets, etc. and had strict supervision. The latter was mainly made by manufacturers through agents, which directly brought products into beauty parlors and brought them to beauty parlors. After-sales service, thus forming a mysterious kingdom of cosmetics consumption.
Among these products, Sanwu cosmetics without approval number account for a considerable proportion. The so-called quality inspection reports provided by suppliers are difficult to distinguish between genuine and false, while the supervision is obviously absent.
On August 1, the Peoples Procuratorate of Xinghua City issued procuratorial suggestions to the market supervision and Administration Bureau of Xinghua City, proposing to strengthen the management of the beauty industry, rectify the beauty market, regularly conduct spot checks on the products sold or used by beauty parlors, and promptly transfer case leads to the public security organs.
Source: Gu Yunting_NBJS8499, Responsible Editor of China Youth Daily