By ZHAO Xiaojuan
Chang Ting and Lin Ruiyang, a celebrity couple who were charged with running a pyramid scheme through their online cosmetic brand, have had their case dismissed by a Shijiazhuang court. Seized properties, including 96 houses worth 1.7 billion yuan (US$230 million), were returned.
Regulators launched an investigation into the couple’s business in December 2021, around the time when livestreamer Viya was fined 1.3 billion yuan for tax evasion. Other top influencers also had their personal finances investigated.
Chang and Lin founded Tin’Secret (TST) in 2013. The products were mainly sold on WeChat and the brand’s own apps. When live streaming e-commerce became popular, the couple invited their celebrity friends to their live infomercial sessions. An actor who reportedly has a stake in the business is said to have been paid 420 million yuan in dividends over a period of five years.
TST embraced attention and even controversy. It claims to have paid 1.2 billion yuan in taxes in 2018. When the couple donated 5 million yuan to flood victims last year, they made sure the news made the trending list.
There were murmurs of a pyramid scheme before investigators stepped in. Customers who spent 2,500 yuan or more were enlisted as sales associates and paid commissions according to seniority. TST argued that the payouts were simply customer giveaways.
The turning point came in November last year when the defendants’ attorney questioned the qualifications of expert witnesses and the validity of their testimonies. He also argued that the Shijiazhuang-based prosecutors had no authority over the case.
The case didn’t stop the couple’s business empire from expanding. They founded a food company in August. And according to a TST agent, operations continued as normal at the company.
