By WEI Xianghui
Shanghai Dowell Trading Co, the parent company of celebrity cosmetics brand Tin’s Secret (TST) founded by Taiwanese movie stars Chang Ting and Kevin Lin, has been fined 21 million yuan (US$3.3 million) for a pyramid sales scheme, according to a copy of a written decision made available to Jiemian News.
The copy, stamped as classified material, appears to have been issued by the market regulator of Baokang County, a small town in central China’s Hubei Province. An investigation began in May last year. The verdict was reached on September 3.
In the copy, the market watchdog said members of TST had to recruit more members to get a bonus, in breach of regulations on pyramid selling. Dowell was ordered to stop the scheme and 19.28 million yuan of the company’s profit was confiscated, plus a 1.7 million yuan fine.
When Jiemian News called to verify the authenticity of the document, an official in Baokang claimed ignorance of the matter but said he would report the matter to his superior. By press time, neither Baokang nor TST had made any public comment.
TST is also under investigation in Shijiazhuang, the capital city of Heibei Province, for allegedly using the internet to engage in pyramid schemes. An official statement in December said the case had entered the financial auditing stage. At the time, Chang Ting and TST issued a statement claiming the company “operated in accordance with Chinese laws.”
Chang and Lin’s social media accounts have been suspended, but TST’s e-commerce apps are still operating. A sales event is ongoing until April 30.
