Is bio-based power alcohol a pyramid scheme?

Bio-based Power Alcohol is a pyramid scheme.

On May 23, 2018, the Sucheng District Market Supervision Bureau of Suqian City organized law enforcement personnel to conduct a thorough investigation, and jointly launched a special operation against the illegal pyramid schemes of "bio-based power alcohol" in conjunction with the public security and other departments.

Pan Zhengyu, captain of the Enforcement Brigade of Sucheng District Market Supervision Bureau, told reporters that 7 people involved in the case were arrested on the spot, as well as several suspected pyramid schemes such as computers, books, and account numbers. The Wujie Yuelian pyramid scheme site was seized on the spot and the main person in charge was handed over. The public security department will conduct further investigation.

Extended information:

Recently, a short marketing video went viral in Suqian citizens’ WeChat Moments. Different car owners filled the car’s fuel tank with white and transparent plastic buckets. A white transparent liquid with no markings on the barrel, this liquid claims to be a substitute for gasoline. ?

The reporter’s investigation found that this so-called “miraculous” water is sold in local specialty stores. In the courtyard of Bawang Mall in Suqian City, there is a Wujie Yuelian Trading Company. People familiar with the matter said that this company is promoting this product. Upon entering the store, a staff member immediately enthusiastically introduced the advantages of the product to reporters and conducted experimental demonstrations.

The sales model of bio-based power alcohol is a membership system, and commissions are earned by developing downlines. Operators claim that they can earn up to one million yuan a month by joining a membership. Many local citizens in Suqian participated.

According to the information provided by the other party, this transparent liquid is called bio-based power alcohol. It is jointly developed and produced by Shenzhen Huide Industrial Co., Ltd. and the Chinese Bikers Federation. It is a completely replaceable Gasoline products.

The staff said it is better than gasoline because it is cheaper than gasoline and has zero emissions and zero pollution. It is now 4.9 yuan per liter. It only has a protective effect on the engine because it does not produce carbon deposits.

After introducing the product, the staff took the reporter into the office. After playing some promotional videos, a person in charge started writing on the whiteboard while introducing the money-making model. It turns out that consumers must pay 2,980 yuan to become a member before they can purchase the product. However, the other party said that the money will not be paid in vain, and the membership fee of 2,980 yuan will be returned to consumers in the form of rebates.

Not only that, if consumers share the product with others, it is equivalent to developing offline. Depending on the number of people sharing, they can enjoy a rebate of up to 6 times the membership fee. In addition, members also receive salary income when promoting.

In order to dispel the concerns of potential members, the other party also gave an example, "If you reach the ninth level, the maximum salary is 39,000 yuan a day. Last year, a friend of mine earned 8 million in 6 months."

At the scene, many members of the company were full of confidence in this way of making money. However, some citizens have questioned whether this kind of promotion method is suspected of pyramid schemes. Some citizens said: "When I saw reports to identify what kind of pyramid scheme it is, firstly, there is an entrance fee, and there is an entrance fee; secondly, it is to find downlines. If these two points are met, it is classified as a pyramid scheme.

China News Network - "Bio-based power alcohol" product suspected of pyramid scheme, 7 people arrested