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A SHENZHEN-BASED e-commerce platform has allegedly been involved in pyramid selling after it promised high returns to its sales agents for soliciting new agents Hombre Nike Hyperadapt 1.0 Habanaro Red Rojas Negras España , according to a SZTV news report.


The platform, called Dplus 7mall, held promotional events at a Nanshan bar from Aug. 21 to Friday, and each event had over 100 people in attendance. The platform is jointly run by a Guangzhou-registered company Hombre Nike HyperAdapt 1.0 Olive Flak Negras Naranja España , Dplus, and 7mall, a technology company in Shenzhen.


During the promotional events, a speaker told the attendees that they could join the platform and become sales agents by paying 30 Hombre Nike Hyperadapt 1.0 JP Negras Blancas España ,000 yuan (US$4,478) per person. Then, they could get a 15-percent return when they developed a new sales agent or their sales agents developed a new agent.


The speaker said that a sales agent could earn over 1 million yuan annually without doing anything if he could develop 8,000 agents.


According to the speaker Hombre Nike Hyperadapt 1.0 JP Team Naranja Negras España , a sales agent who solicits enough new agents can be promoted to a manager, a board member or even a Dplus partner. He said it only took him four months to become a partner in the company, which enabled him to take a share of the company’s 700-million-yuan dividend.


Many attendees were brainwashed by the speaker during the promotional events. A woman from Hainan Province was taken to the event by her friend, and she paid 30 Hombre Nike Hyperadapt 1.0 JP Casual Negras Rojas España ,000 yuan to become a sales agent without hesitation after listening to what the speaker said.


Dplus also invited its sales agents from across the country to visit its headquarters in the Aliyun Building in Nanshan High-tech Park. The company’s fascinating office environment made many sales agents believe that it was strong and trustworthy.


Dplus tried to legitimize its sales model by saying that it had obtained the direct sales license issued by the Ministry of Commerce. A photo posted on the company’s website showed the No. 90 Direct Sales License, but only 89 licensed direct sales companies can be found on the Ministry of Commerce’s website, and Dplus isn’t one of them.


Dplus said it recently obtained the license, so its information won’t be shown on the Ministry of Commerce’s website until half a year after the license was issued. However Hombre Nike Hyperadapt 1.0 Blancas Pure Platinum España , a lawyer said engaging in pyramid selling would still be illegal for a company with a direct sales license.


As a number of residents in Shenzhen and from across the country have joined the e-commerce platform, it could result in devastating consequences if the platform experienced a capital crunch or its owners fled with the money, an industry insider said.


According to the report, the regulations against pyramid selling that took effect in 2005 need to be amended as new types of pyramid selling schemes have emerged. Some stores operating through social media have crossed the line between direct sales and pyramid sales without being held legally responsible.


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