Miyuan APP was fined and confiscated 3.48 million yuan by the Guangzhou Municipal Supervision Bureau for suspected pyramid schemes
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According to a recent report from Beiqing.com, Credit China showed that Miyuan (Guangzhou) New Media Technology Co., Ltd. (referred to as: Miyuan Company) was fined 500,000 yuan by the Guangzhou Tianhe District Market Supervision Administration for illegal pyramid schemes and confiscated the illegal income. 2978246.60 yuan.
Inquired by a reporter from China Economic Net, the decision on administrative punishment published by the Credit China website (Suitian City Supervision Penalty? 2022? Zhiyi No. 005) shows that Miyuan (Guangzhou) New Media Technology Co., Ltd. has Article 7 of the “Regulations on Prohibition of Pyramid Selling” The illegal behavior of pyramid selling stipulated in item (3) was fined and confiscated by the Market Supervision and Administration Bureau of Tianhe District, Guangzhou City, totaling more than 3.47 million yuan. The penalty decision date is January 13, 2023.
In order to promote the Miyuan APP platform operated by the parties, the Miyuan APP members are divided into two levels: “Operation Specialist” and “VIP Member”, and set up a hierarchical management structure of “Platform-Operation Specialist-VIP Member”; and adopted The team payment system, Miyuan members who shop through the Miyuan APP, recommend their registered members and corresponding operation specialists can get promotion rebates from their purchases.
According to the first paragraph of Article 24 of the “Regulations on the Prohibition of Pyramid Selling”, the Market Supervision and Administration Bureau of Tianhe District, Guangzhou City stipulates that “if there is an act stipulated in Article 7 of these regulations, and organizes and plans pyramid selling, the administrative department for industry and commerce shall confiscate illegal property and confiscate illegal If a crime is constituted, criminal responsibility shall be investigated according to law.” Miyuan (Guangzhou) New Media Technology Co., Ltd. confiscated 2,978,246.60 yuan of illegal income; fined 500,000 yuan, and confiscated a total of 3,478,200 yuan.
According to the official website, Miyuan APP is a social e-commerce content shopping guide platform created by Miyuan (Guangzhou) New Media Technology Co., Ltd. in 2017. Miyuan (Guangzhou) New Media Technology Co., Ltd. was established in May 2017. It is a social e-commerce content shopping guide platform that collects discounts from the entire network. Its APP was launched in July of the same year.
Previously, the administrative ruling of the People’s Court of Hanshou County, Hunan Province ((2021) Xiang0722 Caibao No. 6) published by China Judgment Documents Network on April 21, 2021 showed that the Market Supervision and Administration Bureau of Hanshou County was investigating and dealing with honey sources (Guangzhou ) New Media Technology Co., Ltd. in the case of alleged pyramid schemes, filed an application to the court, requesting to freeze the funds in the Alipay account and bank account set up by the respondent Miyuan (Guangzhou) New Media Technology Co., Ltd. totaling 30 million yuan. After review, the court held that the Hanshou County Market Supervision Administration’s application was in compliance with the law, and ruled to freeze the relevant accounts for a period of one year.
Article 7 of the “Prohibition of Pyramid Selling Regulations” stipulates that the following behaviors are pyramid selling behaviors:
(1) The organizer or operator, through the development of personnel, requires the developed personnel to send other personnel to join, and calculates and pays remuneration (including material rewards and other economic benefits, The same below), seeking illegal benefits;
(2) The organizer or operator obtains the qualification of the joiner to develop other personnel to join by recruiting personnel, and seeks illegal benefits by requiring the distributed personnel to pay fees or pay fees in a disguised form by subscribing for commodities;
(3) The organizer or operator, through the development of personnel, requires the developed personnel to recruit other personnel to join, form an upline relationship, and calculate and pay upline remuneration based on the sales performance of the downline, seeking illegal benefits.
Article 24 of the “Regulations on the Prohibition of Pyramid Selling” stipulates: If there is an act stipulated in Article 7 of these regulations, organizing and planning pyramid selling, the administrative department for industry and commerce shall confiscate illegal property, confiscate illegal gains, and impose a fine of 500,000 to 2 million yuan. ;Constitute a crime, be held criminally responsible. Whoever engages in the acts stipulated in Article 7 of these Regulations and introduces, lures, or coerces others to participate in pyramid selling shall be ordered by the administrative department for industry and commerce to stop the illegal act, confiscate illegal property, confiscate illegal gains and impose a fine of not less than 100,000 yuan but not more than 500,000 yuan; Anyone who commits a crime shall be investigated for criminal responsibility according to law. Whoever participates in pyramid schemes with the acts specified in Article 7 of these Regulations shall be ordered by the industrial and commercial administrative department to stop the illegal act and may be fined not more than 2,000 yuan.
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