Public security authorities launched an investigation on Tuesday into Quanjian Nature Medicine Technology Development Co, a drugmaker based in Tianjin that is suspected of conducting a pyramid scheme and false advertising.
A joint team, including the Tianjin Administration for Market Regulation and the Tianjin Health Commission, probed the company after it was accused of making huge profits by misleading consumers about the efficacy of its products.
The preliminary investigation found the drugmaker was suspected of conducting a pyramid scheme and false advertising, and public security bodies have stepped in to continue the investigation, the municipality's online news portal, tjyun.com, reported.
The authorities have also launched a crackdown on a chain of stores linked to Quanjian that provide fire therapy in breach of fire safety regulations, and a special campaign will be kicked off to supervise and regulate the healthcare product market.
The joint team said Tianjin accepts a high degree of responsibility for people's health and will always protect people's interests in accordance with the law and severely punish those who violate the law, tjyun.com reported.
The team pledged a zero tolerance approach to pyramid schemes operating under the guise of direct selling.
