BEIJING — Direct selling products on record in China have been reduced by nearly half after being reviewed by authorities, the Ministry of Commerce (MOC) announced on June 10.
Chinese authorities launched a nationwide campaign to crack down on irregularities in the health product market in April this year, including reviewing registered direct selling products, trainers and sellers.
After the recheck, the number of direct selling products on record decreased by 44.5 percent, from 4,304 to 1,917. Both the number of direct sales trainers and sellers declined by over 16 percent.
A total of 89 direct selling enterprises completed the review and registration process. Two companies were suspected of committing crimes of pyramid selling and failed to conduct reviews and registration in accordance with relevant procedures.
Carrying out the review and registration and disclosing relevant information will effectively purify the direct selling market, and help to crack down on illegal enterprises, said a MOC official.