A total of 18 people have been arrested and another two are out on bail in the case of Tianjin-based health industry giant Quanjian, which is being investigated for exaggerating the results of its drugs, according to the investigators.
The actual controller of the company, surnamed Shu, was among those arrested.
Earlier on Tuesday, Tianjin police launched an investigation into the Quanjian Nature Medicine Technology Development Co., Ltd., after an outburst online accused the company of making false claims in its advertisements and of being involved in a pyramid scheme.
The company was also blamed for the 2015 death of a four-year-old girl who had cancer.