Chinese police have detained 18 suspects implicated in a health product company's scandal of pyramid selling and false advertising, investigators said Monday.
The suspects include the actual controller, identified as a 51-year-old man surnamed Shu, of QuanJian Nature Medicine Technology Development Co. Ltd. based in Tianjin, according to a joint investigation group.
On Jan. 1, Tianjin police started an investigation into the company that had allegedly organized and led a pyramid scheme and made false claims in its advertisements.
As of Monday, 18 suspects have been detained and two others were released on bail pending trial.
Further investigation is under way.
After the scandal was exposed, Tianjin authorities initiated a campaign to crack down on irregularities in the health product market, targeting exaggerated advertisements and illegal online sales of health products.