The trial of electronic business in MLM Case: The Pacific BMC model of the debate

December 18 Morning, Jiangxi Wonderful Life Investment Development Co., Ltd. (hereinafter referred to as Jiangxi Wonderful) Tangqingnan and other people suspected of organizing, leading MLM activities of the first trial will sit. The Nanchang Intermediate People's Court of Jiangxi province gathered nearly 500 persons, they are from all over the country, Jiangxi wonderful channel merchants, including many people said that they as Tangqingnan support side to attend the audit.

July 2007, Tangqingnan, Cheng Fangying, Xu Xiunchun and other 25 people registered to set up Jiangxi Wonderful Life Industrial Co., Ltd. December 2008, Tangqingnan opened the Pacific (601099, shares) direct purchase of the official website to "collect margin" "shopping rebate" and other forms involving suppliers, channels, consumers and E-commerce Platform Quartet's BMC model.

Using the BMC model, Jiangxi Wonderful company quickly hit a capital billion enterprise, its own including the Pacific Direct purchase of the official network of several platforms, according to close to Tangqingnan, the incident before the company's monthly cash flow up to nearly billion.

April 15, 2012, Tangqingnan, Liu Paohua, Cheng Fangying and other 8 people suspected of criminal organization, the leadership of the crime of MLM activities by the Nanchang public security organs captured.

As of April 9, 2012, Jiangxi Wonderful company to develop a total of 120,000 channels, the development of 6 million other members, including the highest level of global integrity channel Business 47 people, the lowest level of qualified credit channel more than 56,000 people. The company's book reflects a deposit of 6.59 billion, of which the actual charge is 3.79 billion. As of November 21, 2012, Nanchang Municipal Public Security Bureau has frozen 1.1 billion of the company's funds, including suppliers, consumption money, margin.

December 18, Jiangxi Wonderful company Tangqingnan and other people suspected of organizing the leadership of the MLM case. Chen Yousi, chairman of Jing Heng Lawyers Group, said the main issue in the case was whether the BMC model was legal.

First trial trial

Consumption rebate more than 65 million, promotion rebate nearly 1.39 billion. 95.48% of total rebate for the promotion of rebate

The Public prosecution organs believe that the accused Tangqingnan, Liu Paohua, Cheng Fangying and other 8 people with the aid of the Pacific Direct purchase official network, in order to carry out E-commerce as the name, require participants to buy goods or pay the security of the way to qualify, and in accordance with the level of a certain order, directly or indirectly to the number Lured participants to continue to develop others to participate in the nationwide development of the channel business, and cheat huge margin, violating the provisions of the criminal law, should be organized, leading the campaign crime of Pyramid to investigate its criminal responsibility.

At the trial scene, more than 10 lawyers, including Chen Yousi, attended as defence attorneys for Tangqingnan and others.

The defense lawyers believe that the Pacific network can provide consumers and channel operators with real goods and services, rather than selling goods and services in the name of fraud consumers and channels, the model has to enable consumers to obtain genuine, real demand for goods and services. Chen Yousi means that the BMC model is graded according to the amount of consumption, not by the head.

In addition to the deposit, the company's BMC model also opens up the form of rebates based on consumer credits. According to our correspondent got a "Pacific Direct purchase official network integrity consumption points rebate table" shows that the company according to consumer PV points, the merchant divided into 15 grades, and according to different grades for rebate.

According to Nanchang Procuratorate information, as of April 9, 2012, Jiangxi Wonderful Life company book reflect should be issued rebate 1.45 billion yuan, of which, consumption rebate more than 65 million, promotion rebate nearly 1.39 billion. The promotion of rebate accounted for 95.48% of the total rebate. This means that, in fact, the channel business through the consumption of the return profit accounted for a small, but through the marketing can get a lot of return benefits. The public prosecution authorities believe that Tangqingnan mainly rely on the promotion of rebate to lure the channel to continue to develop other personnel to participate.

In addition, the indictment shows that as early as July 2007, when the United States "New century" company members of the Tangqingnan become "New century" Jiangxi general agent, and with Cheng Fangying and other people registered to set up Jiangxi Wonderful Life Industrial Co., Ltd., registered capital of 2 million. At the end of the same year, the United States "New century" company because of MLM by the Shenzhen Municipal Trade and Industry Bureau Futian Branch investigation, after exiting the mainland market.

According to Tangqingnan explained that the United States "new century" in mainland China has never been investigated because of MLM, and then withdrew from China because its development model is not suitable for the domestic market, automatic exit, and its own company before the establishment of the company has obtained the general agent of Jiangxi.

The argument of BMC mode

"Suspected organization leadership, MLM Crime" let this once-beautiful "BMC mode" on the CUSP

This April, according to the Xinhua report, since 2009, Jiangxi Wonderful chairman of the Tangqingnan and other people to "the Pacific Direct purchase official network" E-commerce as a cover, to develop the line to obtain the level of rebate as bait, to "pull the Head" "collection of Entry fees" and other ways to develop channels, collect security, access to illegal caused serious social harm, suspected pyramid selling illegal crime.

According to our correspondent understand, Tangqingnan had previously received public security organs investigation, but the Nanchang Public Security Bureau in November 11, 2010 revoked the case, and that Jiangxi wonderful company suspected organization, leadership MLM case does not constitute a crime.

Up to April 15, 2012, Tangqingnan and other 8 people were investigated again, and was arrested, Jiangxi Wonderful company was also investigated. In addition, in the country, including Shandong, Henan and many other regions, the public security organs of the Pacific direct purchase of the official website of the people involved in the capture action.

As of 2012, the Wonderful Life of the Pacific Direct purchase of the official network, the integrity of the peace-free pass treasure, Wonderful Life convenience concept store, BMP credit loans, Pacific community, Wonderful Life time Business building "six platforms", the entity Wonderful Life convenience concept store in nearly 6,000.

According to Jiangxi Wonderful Life Investment Development Co., Ltd. provides information, Wonderful Life company was founded in July 2007, the company registered capital of 159 million yuan, after the establishment of E-commerce Platform Pacific Direct Purchase official network, launched the BMC business model.

The model has been several times as a new type of E-commerce model by a number of central media reports, December 24, 2010, Wonderful Life was also recommended by the Jiangxi Provincial Business office for E-commerce Demonstration Enterprises, 2010 Wonderful Life chairman Tangqingnan also won the "First investment in Jiangxi Top ten people", and " 2010 China's top ten economic news of the top ten business and economic news "title.

However, later, "suspected organization leadership, MLM Crime" let this once scenery infinite "BMC mode" and Wonderful Life company embarked on the cusp.

September 29, 2011, Beijing Dehong Law firm invited the Chinese Law Society Society of Criminal Law Association president Zhao Bingzhi, Vice President Xingliang and Zhang Mingxian, and other five domestic and foreign criminal law scholars, civil law experts to the Pacific Direct purchase official website BMC model of the legal relationship and whether the operating behavior constitutes a pyramid scheme. Many experts believe that as a new business model, the BMC model involves the legal relationship and legal nature of the problem is more complex, the social parties to the business model involving legal relations and legal nature of different understanding, the relevant departments have not yet to the BMC business model of the nature of the definition.