Xingyao Biomedical failed to report that it was engaged in a multi-level pyramid scheme and was heavily fined NT$400,000 by the Fair Society

Xingyao Biomedical Co., Ltd. failed to report that it was engaged in multi-level pyramid schemes and failed to handle the withdrawal and returns of pyramid schemes in accordance with the law, and was fined 400,000 yuan.

[Reporter Ou Yuxiang/Reported from Taipei] Today’s committee meeting of the Fair Council passed that Xingyao Biomedical Co., Ltd. should be punished for engaging in multi-level pyramid schemes without reporting in advance in accordance with the law, violating Article 6, Item 1 of the Multi-level pyramid schemes Management Act. A fine of RMB 300,000 was imposed. In addition, the company also failed to handle the withdrawal and return of the MLM distributors within the statutory time limit, which violated the provisions of Article 20, Item 2 of the "Multi-Level MLM Management Law" and was fined RMB 100,000, for a total fine of RMB 400,000.

The Fair Association stated that Xingyao Biomedical began to recruit people to join in December 2024. They can become members by purchasing goods. After meeting certain conditions, they can be promoted to one to nine-star employment levels. It has a multi-level organizational structure. Its bonus system includes consumption dividend bonuses, placement bonuses, recommendation bonuses, consumption dividend matching bonuses, operating global dividend bonuses, operating global dividend matching bonuses, etc. It involves multi-level commissions and team remuneration, and is in line with the multi-level pyramid schemes regulated by the "Multi-Level Marketing Management Law".

However, Xingyao Biomedical did not report to the Fair Council before implementation in accordance with the law, which violated Article 6, Item 1 of the Multi-Level Marketing Management Act. In addition, after reporting in January 2025, Xingyao Biomedical failed to complete the MLM refund procedures within the statutory 30-day period for withdrawing returns from its MLM distributors, violating Article 20, Paragraph 2 of the "Multi-Level MLM Management Act."

The Fair Association reminds that before an enterprise starts to engage in multi-level pyramid schemes, it should submit legal documents to the association before implementation, and must handle the exit and return of the MLM distributor's cancellation or termination of the contract in accordance with the statutory time limit to protect the rights and interests of the MLM distributors.