Quanjian Franchise Scam: Multi-level Marketing Exploitation Under the Guise of Natural Medicine and Digital Health Management

Who Gets Targeted

The primary victims are seniors aged 50 to 75, particularly empty-nesters with chronic illnesses who live apart from their children, as well as retirees with savings but high health anxiety. They generally lack professional medical knowledge and hold a simple trust in 'natural therapies' and 'ancestral secret formulas,' making them susceptible to emotional tactics like free health check-ups, small gifts, and health seminars. Psychological vulnerabilities include fear of illness, helplessness regarding aging, blind obedience to authoritative packaging, and difficulty refusing sales pitches from acquaintances, leading them to fall step-by-step into franchise systems and high-priced product traps.

骗局怎么运作

• Step 1: Packaging services as 'natural medicine' and 'digital health management,' the scheme attracts seniors to free health seminars, check-ups, or foot reflexology sessions via community experience stores or referrals. The narrative emphasizes that 'Western medicine has side effects, while our secret formulas provide pure natural healing,' exploiting seniors' wariness of chemical drugs to build initial trust.
• Step 2: During the experience, 'health consultants' perform one-on-one analyses of health data, exaggerating risks such as blocked blood vessels, meridian stagnation, or low immunity to induce health anxiety. Phrases like 'If you don't treat this indicator now, you might be hospitalized next year' are used, leveraging the 'digital' facade to make seniors believe the diagnosis is scientific and rigorous.
• Step 3: Victims are induced to purchase high-priced health supplements or therapy packages as an 'entry threshold,' claiming that 'only by healing your own body can you share in the health business.' Common starting points include thousands to tens of thousands of yuan for fire therapy, 'Bone Correcting' (Guzhengji) devices, or sanitary pads, which have actual costs far below their retail prices.
• Step 4: Customers who have purchased products are upgraded to 'franchisees' or 'members.' Using multi-level rebates and commissions from downlines as bait, they are encouraged to recruit friends and neighbors. The rhetoric includes, 'Since it worked for you, introducing it to your friends is a good deed, and the company will pay you a service fee,' turning victims into the first link in the recruitment chain.
• Step 5: Through regular 'business opportunity meetings' and 'success sharing sessions,' the scheme displays fake displays of wealth—such as dividends, luxury cars, and overseas trips—to reinforce the psychological suggestion that 'as long as you recruit enough people, earning millions a year is not a dream,' keeping elderly franchisees investing and recruiting.
• Step 6: When a victim's capital chain breaks or recruitment stalls, the organization continues to exploit them by claiming 'team performance has not met promotion standards' or 'additional inventory is required to maintain status,' trapping them deeper. Some elderly franchisees even mortgage their homes or take out high-interest loans to maintain their 'agent level,' ultimately losing everything.

红旗信号（看到这些快跑）

• 🚩 Replacing formal medical diagnosis with 'natural medicine' or 'secret formulas,' claiming they can substitute for hospital treatment.
• 🚩 Using free check-ups, free trials, or gifts as entry points, specifically targeting seniors who live alone or have health anxiety.
• 🚩 Emphasizing 'franchise qualifications,' 'membership levels,' and 'downline commissions'—mechanisms for recruiting others.
• 🚩 Packaging product efficacy as 'digital health management reports' while failing to provide approval numbers for drugs or medical devices from national regulatory authorities.
• 🚩 Creating illusions of quick wealth through 'business opportunity meetings' and requiring constant inventory replenishment to maintain agent status.
• 🚩 Demanding purchases far exceeding personal usage and encouraging the recruitment of friends and family as downlines.

真实案例

• According to a report by Jiemian News in December 2018, the Quanjian Group started with 'secret formulas' and direct selling. Its founder, Shu, long promoted products like fire therapy and 'Bone Correcting' devices through a national franchise system, facing accusations of using high rebates to drive multi-level compensation. (Source: https://www.jiemian.com/article/2740082.html)
• According to a report by the Procuratorial Daily in January 2019, allegations of pyramid selling against Quanjian surfaced as early as 2017. Regulatory authorities launched an investigation in 2019, with the case involving multiple elderly franchisees reporting they were induced to invest hundreds of thousands of yuan to recruit friends and family.
• According to a series of cases exposed by CCTV in June 2026 regarding 'predatory wellness centers,' over 20 Quanjian-style centers were dismantled in Beijing and other areas. Hundreds of seniors were defrauded of tens of millions of yuan, using the same tactics of free check-ups, health scaremongering, and high-priced sales of supplements. (Source: https://news.qq.com/rain/a/20260612A052R600)
• In December 2018, Jiemian News investigated Shu Yuhui and the Quanjian Group: Quanjian rose to prominence through secret formulas and direct sales. Founder Shu Yuhui traveled across the country to collect over 600 folk remedies and industrialized hundreds of them, including a famous cancer treatment formula purchased for 80 million yuan; Shu Yuhui held a 51.1% stake in the Quanjian Group. (Source: https://www.jiemian.com/article/2740082.html)

Official Stance

• In January 2019, the People's Procuratorate of Wuqing District, Tianjin, approved the arrest of 16 suspects, including Shu of Quanjian Natural Medicine Technology Development Co., Ltd., for suspected involvement in organizing and leading pyramid selling activities.
• In April 2026, China's National Health Commission issued a warning urging vigilance against private-domain marketing that infringes on the health rights of the elderly, specifically naming 'natural medicine' and 'health management' marketing tactics similar to those of Quanjian.
• In June 2026, Beijing market regulation and public security departments jointly announced the crackdown on over 20 'predatory wellness centers,' explicitly stating that their recruitment and multi-level rebate business models constitute pyramid selling.

How to Protect Yourself

• ✅ Reject and report any health supplement or therapy program that claims to 'replace hospital treatment' or 'cure chronic diseases' to local market regulatory authorities.
• ✅ Before attending any free health check-up or seminar, verify the product's approval number and scope of application on the official website of the National Medical Products Administration.
• ✅ Maintain high vigilance against terms like 'franchise agency,' 'multi-level rebates,' and 'downline commissions,' as these are characteristics of pyramid selling prohibited by law.
• ✅ Establish a co-management mechanism for large expenditures for elderly family members; any health-related consumption exceeding 5,000 yuan must be discussed with children or trusted relatives.
• ✅ If you discover that friends or family are being recruited by such organizations, preserve chat logs and transfer records, and promptly report the matter by calling 12315 or 110.