html At the end of the year, the sensational " Quanjian incident " attracted attention from the New Year. When Quanjian Company was deeply trapped in the whirlpool of public opinion, and was questioned, the direct sales industry also attracted widespread attention from the society. Direct sales have been in China for more than 20 years. Since the first direct sales license was issued in 2006, more and more companies have obtained direct sales licenses, and the scale of the direct sales market has also continued to expand. However, at the same time, problems such as false propaganda and illegal direct sales have always been with us. Regarding how to end the chaos in the direct sales industry, industry experts believe that multiple measures should be taken to strengthen supervision and implement responsibilities, and at the same time give full play to the role of industry associations as self-discipline and normative, and urge and guide operators in the industry to operate in accordance with the law. Industry supervision has been continuously strengthened and
direct sales have been in China for more than 20 years. Since the first direct sales license was issued in 2006, more and more companies have obtained direct sales licenses, and the scale of the direct sales market has also continued to expand. However, at the same time, problems such as false propaganda and illegal direct sales have not been cured.
In December 2017, the State Administration for Industry and Commerce released the "Survey Report on the Grading and Classification Supervision Project of Direct Sales Enterprises" on its official website, showing that in the investigation of illegal acts in the operation of direct sales enterprises, the top three are false propaganda, engage in direct sales activities without approval, and engage in pyramid schemes. The proportion of illegal acts is 88.9%, 50%, and 44.4% respectively.
Industry experts said that the reason why the image of the direct sales industry has been relatively low has not been fundamentally improved yet. In addition to the industry development stage, it is also related to the violations of some companies, especially the company's miscontrol over dealers, and it is also related to illegal pyramid schemes.
htmlOn November 8, the State Administration for Market Regulation and 13 departments held a video conference on the 100-day action to rectify the chaos in the "health care" market to mobilize and deploy the "100-day action". In the "100-day Action" plan, direct sales of products have become the focus of rectification. The plan stated that market access for the direct sales industry is strictly enforced and the handling of direct sales-related approvals, filing and other matters will be suspended. The focus will be on investigating and punishing direct sales enterprises and their direct salesmen who violate direct sales and engage in pyramid schemes. If a direct sales enterprise and its branches engage in illegal and illegal acts such as false publicity, operating beyond the scope of direct sales products, and conducting direct sales business in unapproved areas, the filing of the direct sales product involved shall be revoked on the basis of law enforcement and punishment by market supervision and other departments; if the circumstances are serious, the direct sales business qualification of the corresponding branch shall be revoked in accordance with the law until the direct sales business license of the enterprise is revoked. htmlOn the afternoon of November 10, Guangdong Province jointly deployed a 100-day video conference on rectification of chaos in the "health care" market was held at the Provincial Market Supervision Bureau. At the meeting, the Provincial Department of Commerce stated that from now on, the province will suspend applications for enterprise direct sales licenses, branches, service outlets, product filing and other matters. The Provincial Department of Commerce will cancel product registration, revoke service outlets, revoke branches and revoke direct sales business licenses for direct sales enterprises with evidence to prove that they are suspected of violating regulations and laws, and form an effective deterrence. Association issued a document requiring self-inspection and self-correction
In response to a series of problems exposed in the "health care" market, at the 100-day video conference on jointly deploying and rectifying chaos in the "health care" market, Zhang Mao, director of the State Administration for Market Regulation, said that it is necessary to strengthen social governance, deeply mobilize all aspects of society to participate in the "100-day action", give full play to the self-discipline and normative role of industry associations, and urge and guide operators in the industry to operate in accordance with the law.
Relevant person in charge of the Guangdong Provincial Direct Sales Enterprise Association told reporters that in order to maintain the order and stability of the Guangdong Provincial Direct Sales Enterprise Association issued the "Notice on Carrying out Daily Business Self-Inspection and Self-Correcting Activities" on January 9, requiring all member units to fully recognize the importance of law-abiding production and operation, keep a good job in product quality, firmly establish the development concept of quality as life, and at the same time carry out self-inspection and self-correcting activities to seriously rectify problems.
Guangdong Direct Sales Enterprise Association requires in the notice that all member units should implement legal awareness and integrity concepts in the production and operation management of enterprises, so as not to cross the red line or touch the bottom line, and carry out daily production and operation activities in accordance with the law and regulations.All member units should conduct careful self-inspection in accordance with the two regulations and relevant laws and regulations, focusing on product promotion, remuneration methods, direct sales areas, operation models, online e-commerce platforms (WeChat, Moments, Weibo , Douyin), etc. Product publicity should be consistent with the submitted approval and filing materials, especially the publicity of health products should not be exaggerated, nor should it be promoted as a magical medicine that can cure all diseases. Correct and rectify the problems found in the inspection, and eliminate illegal and irregular behaviors such as false propaganda, illegal advertising, consumer fraud, and illegal direct sales in daily operations.
At the same time, the Guangdong Provincial Direct Sales Enterprise Association also requires member units to keep a good product quality to ensure the quality and safety of each product, so that consumers can buy, use and eat with confidence. At the same time, it is necessary to improve the internal daily supervision process, plug control loopholes, improve and perfect the internal supervision system and process, strengthen supervision and management of dealers and direct salesmen, and deal with problems in a timely manner when they are found.
It is understood that many direct sales companies have issued notices on correct promotion of products or strictly regulate market operation behaviors or further regulate partner behaviors.
■Experts suggest that
direct sales companies should face public doubts with a transparent attitude
"For direct sales companies, it is very important and urgent to get rid of the troubles of pyramid schemes." Yang Qian, deputy director of the China Direct Sales Industry Development Research Center of Peking University, said that direct sales companies should be more proactive in integrating into mainstream businesses. First, they should remove the mystery of direct sales and face the public's doubts with a more transparent business attitude; second, they should get rid of the solidified model and apply more various business methods provided by modern technological progress to integrate them with traditional direct sales operations; third, they should spread the correct direct sales concepts and information to the public more effectively and strengthen consumer education; fourth, they should strengthen the construction of industry organizations so that the direct sales industry can have a relatively sound industry self-discipline mechanism.
Associate Professor Huang Yingzi of the School of Management of Sun Yat-sen University said that for direct sales companies, the most important prerequisite for getting rid of the negative impact of pyramid schemes is to make the product well. The Guangdong Direct Sales Enterprise Association also pointed out in a research report previously released by the Guangdong Direct Sales Enterprise Association that "the overall quality of practitioners is not high", "general low awareness", "poor legal concepts", and "ineffective publicity" are the main issues affecting the development of Guangdong's direct sales industry. The report recommends that direct sales enterprises should formulate long-term strategic plans and cannot engage in "short, flat and fast" speculative behaviors, and should return to the steady growth pace of product-oriented and service-oriented concepts.
[Author] Zhao Binghui
[Source] Southern Media Group Southern + Client Southern Number ~ Depth ~ Guangdong Direct Sales Observation
