In July 2019, the future market APP of Circle E-Commerce was launched. According to future market data, the application has 1.5 million paying subscribers and 1.5 billion platform transactions since its launch, and completed hundreds of millions of financing from 360 finance in July this year.
However, the official Wechat public number of the future market will be shut down by Wechat 10 days after its launch on the grounds of suspected illegal distribution. On September 29, an administrative ruling issued by China Judicial Documents Network once again dragged the founder Wu Zhaoguo and his future market into the whirlpool of public opinion.
According to the ruling, Guangzhou Future Fair Network Technology Co., Ltd. (hereinafter referred to as Future Fair) suspected of engaging in pyramid selling through the establishment of Future Fair APP e-commerce platform, and 13 accounts of seven related companies were frozen by the Peoples Court of Hengyang County, Hunan Province.
Recently, Peng Mei News secret interview found that in the future market APP will implement the marketing mode of paying fees to join, pulling people, and multi-level incentive mechanism. Lawyers point out that according to the Regulations on Prohibiting Pyramid Marketing, this business model of the future market is suspected of illegal pyramid selling.
On Oct. 12, Peng Mei News called the future market in response to the above situation, but received no response.
In future market screenshots of APP, users must first invest 399 yuan to purchase membership gift packages, and then fill in (or scan) the invitation code to register on the platform.
Complaints continued in March, with consumers claiming it was difficult to get a refund.
Shopping to save money, sharing to make money is the slogan of the future market from the beginning of the online.
Wang Yue (a pseudonym) of Xian, Shaanxi Province, became an ordinary shopkeeper in the future market with 399 yuan introduced by a friend in August this year. According to the regulations, she can not only enjoy shopping preferences, share links with others and get a certain percentage of commissions after successful sales.
But she was soon disappointed. Wang Yue told Peng Mei News that she ordered a single item in early August. Before delivery, she realized she had picked the wrong item and clicked to cancel the order and asked for a refund. In the next month, the platform did not deliver the goods, nor did it handle her refund request. Customer service reply is always to let me wait patiently.
Wang Yue said that on September 15, in a hurry, she posted a post for help on Sina Weibo. A few days later, her refund finally arrived. She never used the future market after that. How can such after-sales service reassure consumers?
Peng Mei News noted that as of 4 p.m. on October 11, there were 800 complaints in the black cat complaints platform alone in the future market which had more than March on line. Most of the consumers said that they had encountered the same dilemma as Wang Yue, such as no refund, inadequate service, no contact with customer service.
Some consumers complained that the sport shoes purchased in the future market were identified as fake by poisonous APP, and also fell into the difficulty of refund after returning the goods. Some consumers even Tucao: online shopping for more than 10 years, never such a platform.
According to industry and Commerce data, Guangzhou Future Market Network Technology Co., Ltd., affiliated to APP, was established on November 29, 2018 with a registered capital of 10 million yuan.
Screenshot of ConsumersComplaints to Future Fairs on Black Cat Complaints Platform
It is worth noting that among the people who complain, there are many future market shopkeepers (that is, shopkeepers) who pay 399 yuan of franchise fee like Wang Yue. A complaint named How much money will be in the future market said that she opened shop on July 14, and when she first presented it on August 4, the platform failed to reach her account on the grounds of a bank card error. Her account was sealed on the 20th of that month and frozen permanently. In the complaint, the netizen said, Investing energy, time and money, just like cutting leek, is cut. Choosing the right platform is very important, for fear of paying no return, but also pouring money, plus time and energy, really can not hurt.
Reporters made secret interviews:
Initial Payment, Head-pulling and Level 3 Awards
On October 8, Pengwei reporters contacted a shopkeeper in Shandong Province by Wechat, saying that if they want to become a shopkeeper, they must first invest 399 yuan to buy a members gift bag and register with the platform by filling in (or scanning) the invitation code. The so-called invitation code is the six-digit combination that each user gets when he joins the future market and becomes a shopkeeper.
In the future bazaar management group, members call each other family members and organize training from time to time.
In its Fair Guide, future fair APP writes that shopkeepers can not only get promotion commissions by sharing sales, but also earn new invitations through the shopkeeper. The aforementioned Shandong shopkeeper told Pengliao News that purchasing 399 yuan membership gift bags can only become an ordinary shopkeeper. After that, every recruiter who becomes a new shopkeeper will be awarded 100 yuan. After recruiting 20 shopkeepers, he can be upgraded to a high-quality service provider. According to him, after becoming an ordinary shopkeeper, you can also get another interest, whether you buy or share links to sell products to others, you can get a commission of 6% to 35% of the commodity price. He stressed that only by becoming a shopkeeper can we join the front desk Wechat group.
Screenshot of course slides circulating in the future bazaar
Peng Mei News in a group of more than 100 shopkeepers see that shopkeepers call each other family, and around 7:00 p.m. every day, the group owners will organize training courses such as community operation. The contents are elaborate on how to formulate group rules, formulate group welcoming words, arrange nursery and their interaction, and so on.
On the 10th of each month, the group owners will also share with members screenshots of bank text messages with contents of Cash for Payment at Future Fair, send incentives, or send screenshots of micro-letters from shopkeepers expressing their gratitude to founder Wu Zhaoguo.
Within the shopkeeper group, the group owner shares with members a screenshot of bank short message prompt with the content of Cash on Payment at Future Fair
Gratitude to Wu Zhaoguos Wechat Screenshot
A shopkeeper in Guangdong told Peng Mei News that there is a rule of not being able to speak to the outside world in the future market, that is, how to become the highest level of strategic partners. He introduced that after becoming a high-quality service provider, the reward for each new shopkeeper was upgraded to 200 yuan. When the total number of shopkeepers (including new shopkeepers whose team members are developing downward) increased to more than 750 people, it could be upgraded to a strategic partner. The reward for each new shopkeeper entering the team was 260 yuan, and the reward for each new shopkeeper in the team was 160 yuan.
Suspected pyramid selling:
Thirteen accounts of seven companies were frozen by the courts
Because the future market entry fees, pull people and multi-level incentives business model, making its suspected pyramid marketing doubts continue.
On July 10, the official Wechat public number of the market will be shut down by Wechat 10 days after its launch, on the grounds of suspected illegal distribution. On September 29, China Judicial Documents Network published an administrative ruling issued by the Peoples Court of Hengyang County, Hunan Province, on September 24. The applicant is the Hengyang County Market Supervision Bureau (hereinafter referred to as Hengyang County Municipal Supervision Bureau).
According to the ruling, Hengyang County Municipal Supervisory Bureau investigated and dealt with the suspected pyramid selling cases of Guangzhou Future Market Network Technology Co., Ltd., Guangzhou Meibou Purchase and Trade Co., Ltd., Guangzhou Jubaofang Investment Co., Ltd., Guangzhou Youzhi Business Co., Ltd., Guangzhou Sibu Network Development Co., Ltd., Shenzhen Anything Network Technology Co., Ltd., and Guangdong Sibu Group Co., Ltd. Invites the person to transfer or conceal the illegal fund, applies to the court, requests freezes the above enterprise bank account.
Screenshot of the administrative ruling of Hengyang court to freeze the future market and 13 related accounts
On October 12, Pengmei News learned from Hengyang County Market Bureau that in mid-July, the Bureau received reports from consumers claiming to be future market members, claiming that the multi-tier bonus system of the future market was suspected of illegal pyramid selling, and the Bureau filed a case for investigation. According to the person in charge of Fangs surname who was interviewed by Pengchao News, the classification threshold and reward system of members in the future market are basically the same as those obtained by the aforementioned reporterssecret visits. The profit of selling products is very small, while the profit of pulling people is very high, which is suspected of pyramid selling. The person in charge of the name said that in the near future, senior managers of the company had gone to Hunan to learn about the relevant situation. The other side said that its operation mode was to benefit consumers, denied pyramid selling, and the case is still under investigation.
Tian Eye Check Information shows that the legal representative of Guangdong Sibu Group Co., Ltd. (hereinafter referred to as Sibu Group) is Wu Zhaoguo, the founder of the future market. Four companies, namely Guangzhou Meibu Buying Trading Co., Ltd., Guangzhou Jubaofang Investment Co., Ltd., Guangzhou Youzhi Trading Co., Ltd. and Guangzhou Sibu Network Development Co., Ltd., are all wholly owned subsidiaries of Sibu Group with 100% control. Shenzhen Anything Network Technology Co., Ltd. will subscribe 95% of the shares by the future market.
According to the above-mentioned ruling, the Hengyang County Court, after examination, found that the future market was suspected of engaging in pyramid selling through the establishment of future market APP e-commerce platform. Its bank accounts with the six companies mentioned above were suspected pyramid selling fund deposit accounts. Therefore, it decided to freeze the bank accounts of the seven enterprises mentioned above and all 13 bank accounts tied up with them. Households.
Zhou Hao, a lawyer of Beijing Weiheng Law Firm, told Pengwei News that according to the Regulations on Prohibiting Pyramid Marketing, the future market operation mode belongs to the type of pyramid selling behavior prescribed by law, that is, organizers or operators, through the developer, require the developer to develop other personnel to join in, and calculate the number of people who are developing according to their direct or indirect rolling development. Payment of remuneration (including material incentives and other economic interests) for illegal interests is suspected of illegal pyramid selling.
On Oct. 12, Peng Mei News called the future market in response to the above situation, but received no response.
Founder Wu Zhaoguos account number has been deleted
In the future market members, Uncle Angkor Shaoguo is a well-deserved soul figure.
Wu Zhaoguo, a native of Linyi, Shandong Province, once sent handbills, sold paint and went door to door to sell cosmetics in beauty salons after the college entrance examination was defeated, the Southern Daily reported in 2015. In 2010, Wu Zhaoguo was transferred to Guangzhou as the general agent of a cosmetics brand. Three years later, he established his own Guangzhou Delimey Cosmetics Co., Ltd. In March 2014, Guangzhou Sibu Biotechnology Co., Ltd. was formally established as the predecessor of Guangdong Sibu Group.
According to Sibus official website, Sibu has more than 30 strategic partners, such as Guangdong Xingmei Cosmetics Co., Ltd. and Guangzhou Sibu Nonwoven Products Co., Ltd., with an annual output value of 10 billion yuan.
But Wu Zhaoguo is more familiar with his speaking ability than with his marketing achievements. In every conference or forum, Dream and Public Welfare are important topics that Wu Zhaoguo must talk about. Peng Mei News noticed that a large number of videos of Wu Zhaoguos speeches could be found on some live webcasting platforms.
On the other hand, Wu Zhaoguo still believes in the idea of relying on advertising to become popular. In 2014, the total advertising in Sibu reached 300 million, and its brand endorsers landed on CCTV, Hunan Satellite TV and other television stations. Wu Zhaoguo had predicted to the media that Sibu would be transformed into a platform for micro-business channels in the future.
In July this year, Wu Zhaoguo appeared with the future market APP of Circle E-Commerce which is the main type of sharing. However, the storms involved dragged him and the future market into the whirlpool of public opinion. On Oct. 12, Wu Zhaoguos account was not found in the Express.
After the news of the freezing of the account came out, Wu Zhaoguos account was blocked by the express platform, but a large number of videos of his speeches could still be found.
Wu Zhaoguo once responded to the suspicion of pyramid selling: We are tax-paying enterprises, the main companies and 40 branches pay more than 40 million yuan in taxes in the first quarter of this year. People from relevant departments in Huadu District once told Nanfang Daily that Sibu had paid more than 20 million yuan in taxes in the first year of its settlement in Huadu.
Pengmei News noted that besides running a number of companies, Wu Zhaoguo has another identity - member of the 10th Guangzhou Huadu District Committee of the CPPCC. According to Nanfang + reports, in January 2018, Wu Zhaoguo attended the third meeting of the 10th Huadu District Committee of the CPPCC Guangzhou, listened to relevant work reports and made suggestions and suggestions.
Why Social E-Commerce Is Difficult to Leave the Shadow of Pyramid Marketing
Social e-commerce is not alone.
As early as 2017, Yunji Micro Store was fined 9.584 million yuan by the market supervision department for its pyramid selling suspected of operating on the basis of paying entry fees, pulling peoples heads and team compensation. On March 14, 2019, the peanut diary was ordered by the Guangzhou Administration for Industry and Commerce to correct the illegal pyramid selling activities, and a total fine of 74.56 million yuan was imposed, creating the largest penalty in the field of social e-commerce in China.
Behind the rapid development of social e-commerce, the issue of compliance has become increasingly prominent. Compared with traditional e-commerce, social e-commerce has the characteristics of experiential purchasing, user active sharing and rich sales scenarios, which is more conducive to usersrenewal, retention and transformation. Zhou Hao believes that the fundamental reason why social e-commerce is difficult to cut away from pyramid marketing is the business model of social e-commerce: the membership model often adopted by social e-commerce and the activation of the circle of friends, which is inevitably intertwined with pyramid marketing fees, pulling peoples heads and team pay.
Compliance requires a thorough distinction between pyramid selling and real and reasonable sales of commodities as a way of making profits, rather than under the guise of selling commodities, to establish a pyramid level by pulling people to get entry fees at the head level. Zhou Hao said.
Zhou Hao said that pyramid selling in the sense of criminal law is different from pyramid selling in the level of industrial and commercial administrative law enforcement. Being recognized as pyramid selling activities stipulated in the Regulations on Prohibiting Pyramid Marketingdoes not necessarily constitute the crime of organizing and leading pyramid selling activities, but the boundary between administrative law enforcement and criminal offences should not affect the strength of administrative law enforcement. Commercial acts are characterized as illegal. Although pyramid selling has not yet constituted a crime, law enforcement agencies should also intensify law enforcement efforts, through on-site inspection, once found illegal pyramid selling, to stop illegal activities. Zhou Hao said that the regulatory problem is how to accurately identify whether social e-commerce is illegal pyramid selling. Peng Mei News noted that the E-Commerce Law, which was implemented on January 1, 2019, regulates the division of social e-commerce into sub-areas of e-commerce. In May this year, the Social E-Commerce Business Code has also ended its public consultation. Zhou Hao believes that as a new business model, social e-commerce needs to make a substantive judgment whether it is legal or not. It can not be categorized as pyramid selling once it sees the membership model and pays the membership fee. Since it is difficult to define the relationship between social e-commerce and pyramid selling, it is necessary to define the operational norms of social e-commerce in the form of laws and regulations to help social e-commerce develop in accordance with the rules. Source of this article: Peng Mei News Responsible Editor: Zhou Xinyi_NB12002
Zhou Hao said that pyramid selling in the sense of criminal law is different from pyramid selling in the level of industrial and commercial administrative law enforcement. Being recognized as pyramid selling activities stipulated in the Regulations on Prohibiting Pyramid Marketingdoes not necessarily constitute the crime of organizing and leading pyramid selling activities, but the boundary between administrative law enforcement and criminal offences should not affect the strength of administrative law enforcement. Commercial acts are characterized as illegal. Although pyramid selling has not yet constituted a crime, law enforcement agencies should also intensify law enforcement efforts, through on-site inspection, once found illegal pyramid selling, to stop illegal activities.
Zhou Hao said that the regulatory problem is how to accurately identify whether social e-commerce is illegal pyramid selling.
Peng Mei News noted that the E-Commerce Law, which was implemented on January 1, 2019, regulates the division of social e-commerce into sub-areas of e-commerce. In May this year, the Social E-Commerce Business Code has also ended its public consultation.
Zhou Hao believes that as a new business model, social e-commerce needs to make a substantive judgment whether it is legal or not. It can not be categorized as pyramid selling once it sees the membership model and pays the membership fee. Since it is difficult to define the relationship between social e-commerce and pyramid selling, it is necessary to define the operational norms of social e-commerce in the form of laws and regulations to help social e-commerce develop in accordance with the rules.