Chinese herbal drug maker under police investigation over sales, false advertising

Photo: Caixin

Tianjin’s Quanjian Group, a well-known herbal drug and nutritional drinks maker in China, has come under police investigations after being accused of causing the death of a four-year-old girl with cancer, according to Beijing-based finance magazine Caixin.

Investigators have found evidence that Quanjian was involved in a pyramid scheme, a sales model which has long been banned by the government, as well as false and misleading advertising, said the local government in Tianjin.

“The authorities have also closed some of Quanjian’s franchise stores that provide ‘fire therapy’ for fire safety reasons.”

“Fire therapy” is a treatment which Quanjian claimed can cure various diseases, and therapists pour alcohol on patients and set them alight. In 2018, at least four of the shops were ordered to compensate their customers for injuries caused by the process.

Public security departments have stepped in to continue the investigation, according to news website the Paper.

Founded by Shu Yuhui in 2004, Quanjian’s revenue in 2017 exceeded 1 billion yuan (US$145 billion) with a net profit of 128 million yuan.

The company sold over 100 healthcare products, of which only 13 had proper registration records, according to preliminary investigations.

Leading shopping sites, including Alibaba’s Taobao and JD.com, have removed Quanjian’s products from their digital shelves.


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