Zhongxin Jingwei Client March 20th (Dong Xiangyi) Shortly after March 15, the incident of "women drinking like new juice died" once again set off public opinion and pushed the direct selling giant Ruxin Group to the forefront. For example, during the 16 years when Nu Xin entered the China market, its doubts on the development path never stopped, and it repeatedly touched the red line of violation of laws and regulations. Five years ago, the alarm sounded by the People's Daily was still ringing in my ears, but who would have thought that after the collapse of the tens of billions of empires, Ruxin became the next "death pusher".

Death like fresh juice?

According to the report of Beijing Youth Daily on March 18, a 34-year-old woman died of a serious lung infection. Before she died, she didn't see a doctor in time. She just drank new juice and related products, which made her have a fever and eventually delayed treatment. She is also a new salesman, and she usually has the habit of taking company products.

For example, official website found that the juice the employee drank before his death was called "g3 active mixed juice drink". According to the product introduction, g3 active mixed juice beverage is a general juice, which contains four different fruits, namely Momordica cochinchinensis, Rosa roxburghii, Lycium barbarum and Hippophae rhamnoides, and contains β-carotene, zeaxanthin, lycopene and vitamin C. The product specifications are divided into bottled and boxed, and the prices are 390 yuan and 690 yuan respectively. At the same time, the product also indicated the words "daily dietary supplement".

According to the memory of the deceased's husband, there was a new box of g3 juice on the wall of the deceased's bedroom, and even the bedside table was filled with this juice. The deceased firmly believes that no matter what the problem is, drinking g3 juice can solve it. Going to the hospital is harmful.

Ruxin Group, as one of the five largest direct selling giants in the world, 1984 was established in the United States, dealing in personal care products and nutrition and health products. Ruxin officially entered the Chinese mainland market in 2003, and obtained the China direct selling license in 2006. It is one of the first direct selling companies to obtain a direct selling license in China.

Or suspected of exaggerating propaganda.

In fact, in recent years when "foreign fruit juice" prevailed, many young people blindly followed the trend and listened to the exaggerated propaganda of merchants, thinking that drinking fruit juice could cure diseases, not to mention the "minor illness" of catching a cold. According to the Beijing News, a company named "Ranjian Global" also claims to have a kind of health care "foreign juice", which can cure all diseases and has a magical effect, but it has caused many consumers to suffer greatly.

As for whether fruit juice can play the role of detoxification and promote the recovery of diseases such as colds, there is still no final conclusion in medicine. Wang Xiangyun, the attending physician of respiratory medicine in Changzheng Hospital, once told the media that most people who think that fruit juice can treat colds think that vitamin C contained in fruit juice has played a role, but in fact, whether vitamin C can treat colds is still controversial. The doctor also pointed out that some fruit juices are very irritating to the gastrointestinal tract. Many patients have a sore throat when they have a cold. If you drink watermelon juice and orange juice at this time, it will have a negative effect on the inflamed throat. Doctors usually advise patients to drink warm water instead of juice.

Zhongxin Jingwei client specially calls Ruxin customer service for this purpose. The other side stressed that "g3 juice is only used as a daily dietary supplement and is rich in vitamins, but it has no effect on treating diseases." The customer service said that no matter ordinary food or health care products can replace drugs, you should choose to seek medical treatment in time if you find any discomfort.

However, paradoxically, it is reported that if the new employees are still alive, they repeatedly emphasize to their relatives that "g3 juice can do anything" and "don't go to the hospital when you are sick, just drink juice"; For example, the new internal training textbook also shows that "85% of drugs are ineffective, and the best measure for patients is to minimize medical intervention."

For example, the inconsistency of Nuxin's internal and external expressions has also caused doubts on the Internet. Some netizens believe that Nuxin "deceives and misleads consumers. I hope that the industrial and commercial departments will strengthen the management of the direct selling industry. "

Some netizens broke the news: "Many years ago, my colleague founded Ru Ru Nu, which gives us brains every day and sometimes helps us buy some products when we are embarrassed. They went to her house and couldn't get their feet in. She asked her tutor to give us a class, saying that at the age of 59, she ate Ru Ru Nu and gave birth to a baby, and g3 juice cured all diseases, but she didn't listen to it in these years. "

It is understood that in 2005, Article 5 of the Direct Selling Law promulgated by China clearly stipulates that direct selling enterprises and their direct sellers shall not engage in deceptive and misleading publicity and promotion activities. For direct selling enterprises that violate this regulation, the administrative department for industry and commerce shall impose a fine of more than 30,000 yuan and less than 65,438+10,000 yuan; If the circumstances are serious, a fine of 654.38+10,000 yuan but not more than 300,000 yuan shall be imposed.

Zhu, a food industry analyst in China, told Zhongxin Jingwei client that the new g3 product is only an auxiliary product, not a therapeutic product. "The most critical issue of this incident is that the company exaggerated the product functions and the operation on the consumer side was not standardized. There are false propaganda and acts suspected of deceiving consumers. This is also a common problem in the entire direct selling industry. "

Zhu believes that overall, Ruxin Group may be severely punished. "As for whether it will collapse like Quan Jian, it's hard to say. But in fact, the state has been making great efforts to investigate and deal with direct selling enterprises. " He said.

Lawyer Zhang Xinnian of Beijing Shi Jing Law Firm also said that, for example, in the process of selling new products, relevant salespeople were suspected of exaggerating, making false propaganda, fabricating the efficacy of products, and misleading consumers to blindly buy products, which constituted fraud or even fraud. Should be in accordance with the provisions of the Consumer Protection Law, bear the civil liability of three times the price of goods, the relevant departments should intervene in the investigation, strengthen supervision and give administrative punishment.

The People's Daily once exposed the inside story of its direct selling.

The new business model is not only suspected of exaggerating propaganda, but also accused of pyramid schemes. According to the aforementioned report, if Nuskin's internal information shows that there are nine levels from star customers to business consulting directors, all participants need to spend a certain amount to qualify as Nuskin dealers.

In view of this pyramid-like hierarchical structure, "high commission" is given to offline personnel. Some lawyers pointed out that the new business model is "typical pyramid scheme". It is worth mentioning that when someone suspects that Ruxin is a pyramid scheme, the so-called "mentor" argues that if Ruxin has a direct sales license, "foreign pyramid schemes and direct sales are the same word."

In fact, this is not the first time that Nuxin has been questioned about pyramid schemes and false propaganda. From 2013,65438+10, 15 to 17, People's Daily published three articles in succession, exposing the new company's suspected illegal operation. According to the report, such as "spreading false information, organizing the brainwashing of clients", "buying 500 yuan products before entering the business" and developing "offline" can be promoted to "global leaders".

Subsequently, after investigation, the State Administration for Industry and Commerce found that if Nuxin engaged in illegal activities such as direct selling and exaggerating the efficacy of products in its business activities, its personal salespeople engaged in illegal activities such as direct selling, deception and misleading publicity without authorization.

Accordingly, the State Administration for Industry and Commerce dealt with the illegal acts of Ruxin Company and related parties according to law. At that time, Ruxin was fined 4.86 million yuan. After being severely punished for illegal operation, if it is publicly stated, it will actively implement and improve, and continue to strengthen the behavior education and norms of sales personnel.

According to reports, for example, the problem that appeared at that time was "making money online through offline", which is absolutely forbidden in China's direct selling laws and regulations. According to Article 24 of China's "Regulations on Direct Selling Management", the remuneration paid by direct selling enterprises to direct sellers can only be calculated according to the income of direct sellers selling products directly to consumers, that is, income cannot be obtained through offline performance, which is also one of the boundaries between legal direct selling and illegal pyramid selling.

In the Opinions on Further Strengthening the Supervision and Management of Direct Selling issued by the State Administration of Market Supervision last year, it was clearly pointed out that "if there is evidence that the pyramid selling behavior of direct sellers conforms to the agreement with direct selling enterprises or is supported or instigated by direct selling enterprises, the industrial and commercial and market supervision departments will punish direct sellers and direct selling enterprises according to the relevant provisions of the MLM Prohibition Regulations. "

Promote "China may become the largest direct selling market in the world"

In recent years, the direct selling industry in China has developed rapidly, more and more enterprises have obtained direct selling licenses, and the scale of the direct selling market is also expanding. According to statistics, from 2006 to 20 16 and 10, the scale of the whole direct selling market jumped from 26 1 100 million yuan to 200 billion yuan. In 20 17 years, the total scale of direct selling industry in China reached 217.9 billion yuan. Industry insiders predict that the turnover of the direct selling industry is expected to approach 300 billion yuan.

At the same time, in the past 10 years, many enterprises wandered between direct selling and pyramid selling because of their intertwined nature. Even in health care industry, there has been a phenomenon of "fake direct selling and real pyramid selling". Under the regulatory storm, the sensational Quanjian Empire collapsed, but Hualin Company, Sansheng Company and Dongsheng Ye Wei were exposed to illegal pyramid schemes, which once triggered a shock in the industry.

Ruxin, who was also questioned about pyramid schemes, chose to return to public view after the limelight.

The client of Zhongxin Jingwei noticed that President Ruxin China solemnly talked about the China market in an exclusive interview last year: "Ruxin's performance in China now accounts for more than 30% of the global market and is the largest market in the world"; "20 10 China's direct sales account for about 9% of the world ... it may become the largest direct sales market in the world in a few years."

Seriously, as a direct selling enterprise, it is necessary to operate in compliance. For example, if the company is listed in the United States, he stressed, "The China market must take the initiative to do a good job in education and training supervision, otherwise any violation may affect the price of US stocks. Therefore, we can say that the standards of internal supervision are stricter than those of the outside. "

As solemnly stated, the negative news of enterprises will affect the share price of listed companies. For example, the new "juice" incident not only triggered criticism from the media and the public, but also was voted by investors with their feet in the capital market. After the US stock market opened on Monday, it plunged more than 7%, then rebounded slightly, but still closed at 56.69 US dollars/share, a record low this year.

In the first few years of entering the China market, it was as beautiful as new. As the oldest foreign direct selling company, in 20 18, Ruxin Group entered the top ten global direct selling companies with a score of $2.28 billion. In 20 17, it also entered the top 20 of China's direct sales performance list with excellent results.

However, in recent years, Ruxin's performance has continued to decline. The company's annual profit in fiscal year 20 18 was $654.38+22 million, down 5.83% year-on-year, and its first loss in the fourth quarter of the same year was $177.59 million. The company's 20 17 financial report shows that the annual profit is $65,438+$29 million, down 9.54% year-on-year.

The client of Zhongxin Jingwei found that Ruxin (China) Daily Health Care Products Co., Ltd. had 49 risks, 18 peripheral risks and 122 early warning reminders. In addition, there are 30 court announcements, 26 legal proceedings and 6 court announcements. 20 1165438+1October1was listed as the executor by Chaoyang District People's Court of Beijing. (Zhongxin Jingwei APP)

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