DCHL distributors call on government to change law
Angry mainlanders rail against company they say took their money but gave no bonuses
More than 50 mainlanders, who claim to be victims of an Asian chain operating a controversial multi-level marketing scheme in Hong Kong, yesterday called on the government to tighten the city's sales laws.
The group from Guizhou and Shenzhen marched to government headquarters to hand in a petition letter before rallying outside the office of Digital Crown Holdings HK (DCHL) in Causeway Bay.
They chanted slogans, demanded compensation from the company and urged the throngs of mainland buyers and distributors lining up downstairs to "avoid falling into the same trap".
The protesters alleged they were told to buy hundreds of thousands of dollars worth of goods from DCHL, to become individual distributors, and that they would be rewarded through a complex system of bonuses according to their seniority.
But they said they never received any commission, and the products they bought - including wine, milk powder and fragrance oils - were not resaleable.
"I paid the company more than 400,000 yuan (HK$506,700) for products, but I've heard some people paid millions," said one female protester. People even borrowed heavily at the request of those more senior to them.
"The Hong Kong government should tighten its law [on the relevant selling tactics]," said a protester, named Peng.
Another man, called Mark, said DCHL was considered trustworthy as it was allowed to operate in Hong Kong, which had a reputation for a strong rule of law.
The company is allowed to operate here under a law that permits multi-level marketing, but such tactics are banned on the mainland as pyramid selling.
DCHL did not reply to the 's inquiries yesterday.
