Is it illegal to sell Dora?

The Market Supervision and Administration Bureau of Mengyin County, Shandong Province fined and confiscated a suspected pyramid scheme enterprise

On December 15, 2020, the Market Supervision and Administration Bureau of Mengyin County, Shandong Province, in accordance with the " Paragraph 1 of Article 24 of the Regulations on the Prohibition of Pyramid Selling: “Whoever commits the acts specified in Article 7 of these Regulations and organizes and plans pyramid schemes, the industrial and commercial administrative department shall confiscate illegal property and illegal gains, and impose a fine of not less than 500,000 yuan but not more than 2 million yuan. "If a crime is constituted, criminal liability shall be pursued in accordance with the law." After research, it was decided to impose the following penalties on Hangzhou Hongyun Technology Co., Ltd.:

1. Confiscation of illegal income of 46,006,350.51 yuan;

2. Fine 2,000,000 yuan. The above two items totaled 48,006,350.51 yuan and were turned over to the state treasury.

The penalty decision stated:

On March 2, 2020, the Mengyin County Market Supervision and Administration Bureau of Shandong Province received a notice from the Mengyin County Public Security Bureau "Zhejiang Duobao Network Technology" Co., Ltd. is suspected of organizing and leading pyramid selling activities. The notice of handover of clues states: Zhejiang Duobao Network Technology Co., Ltd. established Dora Fitting Room online store, formulated marketing strategies and bonus systems, and was suspected of organizing and leading pyramid selling activities. According to the "Industrial and Commercial Administration and In accordance with the provisions of Article 18 of the Regulations on Law Enforcement Cooperation between Public Security Organs in Combating MLM, this clue was handed over to our bureau for joint investigation. With the approval of the director, our bureau filed the case on the same day, and reported it to the Linyi Municipal Market Supervision Administration and the Shandong Provincial Market Supervision Administration level by level when the case was filed.

During the investigation, our bureau inspected the electronic data of the Dora Fitting Room APP backend server database (IP address associated with Alibaba Cloud: *****) handed over by the Mengyin County Public Security Bureau, Shandong University of Political Science and Law "Forensic Identification Opinion" issued by the Forensic Identification Center (Shanzheng Judicial Identification Center [2020] Dianjian Zi No. 6), Zhejiang Duobao Network Technology Co., Ltd., Hangzhou Hongyun Technology Co., Ltd., Hangzhou Chuanghui Agricultural Technology Co., Ltd. The transaction details of the bank account, administrative penalty case files and other relevant evidence were analyzed and confirmed by Hangzhou Yuhang District Market Supervision and Administration Bureau Hangyu City Guanfenshuzi [2019] No. 636 "Administrative Penalty Decision"; Application to Mengyin County People's Court for Zhejiang Property preservation measures have been taken in the bank accounts of Duobao Network Technology Co., Ltd., Hangzhou Hongyun Technology Co., Ltd., and Hangzhou Chuanghui Agricultural Technology Co., Ltd. Our Bureau conducted inquiries on Wang Wentuo, the legal representative of Zhejiang Duobao Network Technology Co., Ltd., Zhang Yongfu, the entrusted agent of Hangzhou Hongyun Technology Co., Ltd., Zheng Shili, a member of Dora Fitting Room APP, and others, and produced the "Mengyin County Market Supervision Administration Inquiry (Investigation) Transcripts". According to the provisions of Article 57 of the "Interim Provisions on Administrative Punishment Procedures for Market Supervision and Administration", the extension was approved by the person in charge of this bureau on May 28, 2020 for 30 days. On June 28, 2020, the case was approved by the Mengyin County Market Supervision and Administration Bureau. The discussion decided to postpone it to July 30, 2021.