China has suspended the registration and approval of direct selling and cracked down on irregularities in the health product market, the Ministry of Commerce announced on Thursday.
“We will carry out a thorough, nationwide investigation of the B2C industry,” ministry spokesman Gao Feng said, adding that authorities would crack down on any illegal businesses. The ministry will also improve the regulation system, tighten market access and speed up building a credit-based monitoring system of direct selling, Gao said.
Last month, the State Administration for Market Regulation announced the launch of a nationwide campaign to crack down on irregularities in the health product market for more than three months.
The moves came after local authorities launched an investigation into Quanjian Nature Medicine Technology Development Co, a Tianjin-based health product company in December, following an online accusation that the company had made exaggerated claims.