Embattled Tianjin Health Company Probed for False Ads and Pyramid Schemes

By Jonathan Zhong, January 4, 2019

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A case was filed against the Tianjin-based healthcare product giant Quanjian on January 1 for false advertising, exaggerating the efficacy of their products and organizing pyramid schemes, the Tianjin Municipal Government announced on Tuesday.

Ten government departments in Tianjin, including the Market Supervision Committee, the Political and Legal Affairs Commission and the Tianjin Health Commission, will also conduct a thorough investigation into the group and start clamping down on the group’s ‘fire therapy’ shops that “fail to meet fire safety requirements,” while also launching a citywide crackdown on Tianjin’s unqualified healthcare companies. The crackdown will last from now until March 31.

crackdown.jpgA booth in Tianjian for people to learn about the city’s crackdown on unqualified healthcare product companies. Image via China Daily

Quanjian, dubbed the ‘healthcare empire’ in China with an annual sales volume of RMB20 billion, has been in hot water since December 25 after Dingxiang Yisheng, a WeChat account that gives medical news and advice, published an article accusing them of false advertising and contributing to the death of a 4-year-old girl.

READ MORE: Tianjin Health Company Under Fire for Ad Claiming Cancer Cure

Following Dingxiang Yisheng’s explosive exposé, more and more inside stories have surfaced over the past two weeks, sparking increasing public anger towards the ‘healthcare empire.’

In addition to the allegations the group is currently facing, some also suggest that they have been selling unlicensed products. National Business Daily pointed out that although Quanjian obtained its business license back in 2013, it has only 40 products that have been filed for record on China’s Ministry of Commerce’s direct-selling management website. However, there are over 100 products listed on Quanjian’s official website.

Elsewhere, a university student by the moniker of ‘Xuefeng’ released footage she secretly filmed inside one of Quanjian’s hospitals for a school assignment in 2017. She revealed that the hospital frequently held propaganda meetings and that the patient rooms were mostly empty and lacked sufficient equipment and nurses, while their patients “were like actors” and extremely cautious when asked questions.

quanjian-direct-selling-conference.jpg
One of Quanjian’s direct-sale conferences. Image via qq.com

At present, Quanjian has yet to respond to the allegations they are facing. 

Shu Yuhui, the company’s chairman of the board, reportedly told employees to “fully cooperate with the investigation.” Shu is said to have gone to a Southeast Asian country, of which the name has not been revealed.

[Cover image via Sina.com]

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