Recently the SEC alleges Zhunrize to drive a Pyramid Scheme and the SEC’s argument is “substantially all of Zhunrize revenue has comes from the sale of memberships (referred to as stores)”.
Dubli is a larger MLM with a simular e-commerce program and cashback shopping mall and has been expanding to the USA.
Dubli’s strategy is very open as it is a public company and has warned in its own report:
“Continuing analysis of the customer subscriptions, the inherent danger Dubli faces is that, in bundling so many subscription vouchers with paid affiliate memberships, there won’t be a significant amount of customers purchasing subscriptions”.
And:
We are subject to the risk that, in one or more markets, our network marketing program could be found not to be in compliance with applicable law or regulations.
Regulations applicable to network marketing organizations generally are directed at preventing fraudulent or deceptive schemes, often referred to as “pyramid” or “chain sales” schemes, by ensuring that product sales ultimately are made to consumers and that advancement within an organization is based on sales of the organization’s products rather than investments in the organization or other non-retail sales-related criteria.
Affiliate membership to Dubli is available at three price-points:
Business License – $594 ($99 +
Tag Archive for Zhunrize
Hot Business News Today
SEC Action Against Zhunrize May Effect Dubli
by Ted Nuyten • • 0 Comments
Recently the SEC alleges Zhunrize to drive a Pyramid Scheme and the SEC’s argument is “substantially all of Zhunrize revenue has comes from the sale of memberships (referred to as stores)”.
Dubli is a larger MLM with a simular e-commerce program and cashback shopping mall and has been expanding to the USA.
Dubli’s strategy is very open as it is a public company and has warned in its own report:
“Continuing analysis of the customer subscriptions, the inherent danger Dubli faces is that, in bundling so many subscription vouchers with paid affiliate memberships, there won’t be a significant amount of customers purchasing subscriptions”.
And:
We are subject to the risk that, in one or more markets, our network marketing program could be found not to be in compliance with applicable law or regulations.
Regulations applicable to network marketing organizations generally are directed at preventing fraudulent or deceptive schemes, often referred to as “pyramid” or “chain sales” schemes, by ensuring that product sales ultimately are made to consumers and that advancement within an organization is based on sales of the organization’s products rather than investments in the organization or other non-retail sales-related criteria.
Affiliate membership to Dubli is available at three price-points:
Business License – $594 ($99 +
Hot Business News Today
SEC Alleges Zhunrize To Be A Pyramid Scheme – Assets Frozen
by Ted Nuyten • • 0 Comments
Zhunrize, launched in 2013 is a shopping and savings portal and offers affiliates a replicated storefront, which the company has branded “ZhunCity”. The shopping portal starts at $99 and $30 a month, up to $3,000 and $100 a month.
According to a SEC Press release:
“On September 22, 2014, the Securities and Exchange Commission filed a civil injunctive action in the Northern District of Georgia against Zhunrize, Inc. (“Zhunrize”) and its CEO, Jeff Pan (“Pan”). In connection with the filing of this action, the Commission obtained a temporary restraining order against the defendants and an order freezing all of defendants’ assets.
The Commission alleges that Zhunrize, an Atlanta-based multi-level marketing company, and Pan have been operating a fraudulent pyramid scheme that has raised over $100 million from investors worldwide.
According to the Commission’s complaint, Zhunrize purports to be a legitimate multi-level marketing business by which members purchase online stores and then sell merchandise through them, while earning commissions on products purchased by their customers and through store sales to other members and hosting fees paid by those members.
In fact, the company is operating as a pyramid scheme because its commission structure is based on the continual recruitment of new members, with the