Beijing announces crackdown on the first nationwide case of 'professional store closures'
2024-10-23
On the 22nd, the Beijing Municipal Administration for Market Regulation held a press conference, jointly with the Beijing Municipal Public Security Bureau Economic Investigation Corps, to report on cracking down on professional store closures that infringe on consumer rights. The preliminary investigation and evidence collection by the Beijing Municipal Public Security Department found that two art training institutions, Beijing Little Tomato Education Consulting Co., Ltd. (hereinafter referred to as "Art Umbrella") and Beijing Muyi Chuangxiang Technology Development Co., Ltd. (hereinafter referred to as "Muyi Art"), are suspected of professional closure. After receiving clues transferred by the public security department, the Beijing market supervision department immediately launched investigations into two closed businesses, three involved debt agencies, and two closed businesses, investigating and punishing illegal activities such as false registration and assisting in false registration. The total amount of fines confiscated was 655800 yuan, making it the first case in the country to crack down on "occupational closures" and achieving breakthrough progress. The Beijing Municipal Market Supervision Department has simultaneously revoked the false registration items of "Art Umbrella" and "Wooden Art", and identified 9 natural persons including Han, Zhang, and Jia in the closed chain as the direct responsible persons for the false registration. They are not allowed to apply for business entity registration again within 3 years from the date of revocation of the false business entity registration. Since the beginning of this year, the issue of "professional store closers" participating in prepaid business closures to evade debts and infringe on consumer rights has received widespread attention from society. Professional closers usually search for target companies online or offline, evaluate the company's debt situation, charge a certain percentage of commission based on the total debt, and operate through private negotiations, secret agreements, and other methods. They use procedures such as changes, capital reductions, bankruptcy liquidation stipulated in the Company Law of the People's Republic of China to help prepaid operating companies facing business difficulties change their legal representatives, transfer assets, evade debts, and cover up illegal purposes in a legal form. Some "professional store closers" usually organize promotional activities under the name of store anniversary to attract consumers to prepay fees before closing the store. The closure behavior led by "professional store closers" also results in employee salaries being withheld, consumers' prepaid fees being unable to be refunded, disrupting the market economic order, impacting the social credit system, and causing economic losses to the public. In accordance with the requirement of "resolutely cracking down on professional store closures that infringe on consumer rights and interests", the Beijing Municipal Administration for Market Regulation, based on the "Regulations on the Management of Single purpose Prepaid Cards in Beijing", has coordinated and promoted the governance of prepaid cards. With the support of public security and other departments, it has formed a high-pressure crackdown on the entire chain of closed store enterprises, "professional store closures", debt intermediaries, and debtor groups by improving the pre risk warning, inter departmental linkage, and post crackdown and punishment mechanisms, focusing on protecting the legitimate rights and interests of consumers and maintaining social security and stability. The Beijing Municipal Market Supervision Department reminds prepaid business enterprises to strictly implement the "Beijing Single Purpose Prepaid Card Management Regulations" and issue prepaid cards in accordance with the law and regulations; Goods or services shall be provided in accordance with the agreement with consumers, and the quality of goods or services shall not be reduced, nor shall prices be arbitrarily increased; If a business operator encounters significant business risks and decides to suspend or relocate its service premises, it shall inform consumers in advance and continue to fulfill its obligations or refund the remaining balance of the advance payment that has not been consumed. At the same time, we remind consumers that when making prepaid purchases, they should sign a contract with the business operator or keep consumption vouchers to agree on the specific content, price or fee, prepayment refund method, breach of contract liability and other matters of the goods or services, achieve scientific and rational consumption, improve awareness of risk prevention and the ability to safeguard their legitimate rights and interests. (New Society)
Edit：He Chuanning Responsible editor：Su Suiyue
Source：People's Daily
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