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Police uncovers pyramid scheme selling false cure-all juice

Police uncovers pyramid scheme selling false cure-all juice

Posted November. 04, 2014 05:03,   


"There are people who are saying that their juice is a cure-all."

Seoul Metropolitan Police Agency received a report at the end of August of tropical fruit juices being disguised as a cure-all and distributed in pyramid scheme. It found out that a foreign-invested pyramid firm based in southern Seoul was holding a product demonstration event and attended it disguised as guests. The MC said absurd things such as "Cancer cells return to normal cells if you drink this juice," and "They are effective in treating diabetes, preventing arthritis and increasing stamina." Guests applauded with exclamations while some registered as members.

Speculating exaggerative and false advertising, police seized and searched the company on September 15. After analyzing the ingredients labeling, police said that the juice was just a health supplement and had no effects in treating disease.

According to police on Monday, police booked without detention 45 people of the pyramid scheme including the chairman and the Korea branch manager for alleged violation of law on health functional food. It was revealed that they sold 450,000 bottles to 67,000 people for six years from 2008 and reaped 73.9 billion won (68.83 U.S. million dollars) in sales. They were supplied with 7000 won (6.5 dollars) to 9000 won (8.4 dollars) per bottle and sold them at 77,000 won (71.1 dollars) per bottle in earning excessive profits.