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Flower birthday is suspected of pyramid schemes being fined 74.56 million, the largest pen for social e-commerce

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[Hunting cloud network (micro signal: ilieyun) Beijing] reported on March 16 (Text / Zhang Penghui)

Just after 315 this year, Hunting.com was informed that the domestic e-commerce smart shopping guide APP spent a birthday note was suspected of pyramid schemes and was subject to administrative penalties by the Guangzhou Municipal Administration of Industry and Commerce, a fine of 1.5 million yuan and confiscation of illegal income of 73.06 million yuan.
This is also the second large amount of fines in the field of social e-commerce in China. In 2017, the social e-commerce “Gathering Micro Shop” was operated under the behavior of “paying the entrance fee”, “pull the head” and “team compensation”, allegedly pyramid schemes, and the market supervision department fined 9.84 million yuan.
Why did social e-commerce always fall into the “MLM” storm, and what did the birthday flower of this penalty have done?
The birthday card was established in July 2017. It announced that it is an independent APP shopping guide platform, and there will be a large number of preferential product updates every day.
Hunting cloud search for birthday notes found that a large number of copies of “money making” and “offer” flooded the screen: “If you are a consumer, you can receive large coupon orders, save money! If you are an agent, you can See the commission of the merchant promotion reward, and do not press the goods, do not pick up the goods, promote the goods to make money! If you are the operator, you can enjoy the entire team’s consumer commissions!”
This kind of sales model is quite similar to the marketing method of “leading the head”. In 2018, the birthday of the flower caught the attention of the industry and commerce department.
From July 28, 2017 to January 15, 2018, Flower Birthday began to charge a “super member” fee of 99 yuan. It is understood that in the platform setting rules, the birthday card stipulates that members can only receive coupons for the birthday card platform, and super members and operators can obtain the qualification to develop others to join and withdraw commissions from the next level of member consumption. If a member wants to upgrade to become a super member, they will need to pay an upgrade fee of 99 yuan.
In the meantime, the birthday postcard has a total of 7247 super members, and the fee is 7,17,453 yuan. Later, due to complaints from members, from January 16, 2018, the birthday card revised the “99 yuan membership fee” rules, the members and super members will be merged, users can become super members as long as they register, no longer charge.
This can’t help but remind people of the micro-shops that were fined in 2017. Xiao Shanglu, the founder of Yunji Microstore, called it “9.58 million. We pay tuition for social e-commerce.”
The “Gathering Micro Shop” APP started its online trial operation on February 12, 2015. According to the “Administrative Punishment Decision Book”, the promotion mode of Yunji Micro Store is: To become the owner of the collection micro store, it is required to pay 365 yuan a year. The platform service fee, after becoming the “store owner”, can invite other people to join the new store owner, the “store owner” invites the new “store owner” to 160 (direct invitation 30 and indirect invitation 130), you can become a “mentor”, team The number of people reached 1,000, that is, the application became a “partner.”
As of February 18, 2016, the number of people involved in the collection of micro-stores reached 310,221, and the parties received RMB 8,084,100 in the name of platform service fees.
In recent years, online marketing has always been the regulatory focus of the industrial and commercial sector.
In January 2017, Zhejiang E-Commerce “Super Cloud – Platform” WeChat public account was also punished by 200,000 yuan for alleged pyramid schemes.
On June 12, 2017, Jinhua City Market Supervision Bureau imposed penalties on “Mei Tuanwang” to restrict competition and other illegal acts, with a total penalty of 526,000 yuan.
What kind of fate will this birthday party in the “MLM” storm ushered in?
“The company has already passed the hardest time, and will not go bankrupt now, and is going to the formal, sprinting for the IPO.” Today, there are suspected birthday flowers insiders responded in a circle of friends, the fine is true, planned for 2020 Going to the US to go public.
According to the “Internal Description of the Flower Birthday Record PO Road” issued by the person, the flower birthday book completed the financing of 30 million US dollars in April 2018, recently completed the overseas VIE structure and implemented the A+ round of financing of 60 million US dollars, and plans to 2020 Listed on the NASDAQ in the United States.
Beginning in January 2018, Flower Birthday began to prepare for compliance with all businesses, ensuring that all of the company’s business will comply with national laws and regulations; access to the Taobao Alliance channel ID in mid-March, in accordance with the standardization of business operations, to ensure the operation center and operators Sustainable development, sprint for IPO.
Capital is nothing but external force. Today, when the regulation is becoming stricter, whether the birthday card can get the legal pass is probably the biggest test of the listing.

Tags : Flower birthdayGathering micro storeMLM