Online group buying complaints as illegal fund raising

Some group buying companies launched activities that products can be sold in a large group and the price is much lower than that on retail market.

The group buying is different from other online business modes since it will take a long time from paying for the transaction and receiving the products. Sometimes, it takes a whole month.

Taking “24Quan” complaint case as an example, supposing online group buying attracted 10,000 consumers who paid online immediately when they bid for the product for 500 yuan (Chinese currency), the total amount should be 5 million.

Similar cases can be concluded into illegal fund raising or not? Nobody knows how the organizer treated the large amount of money. It can be deemed as illegal fund raising.

Some consumers called for more compensation, which is also beyond of law regulation.

According to statistics, by the end of March 2012, group buying websites have decreased 357 to 3269. Many companies have gone bankrupt due to fierce competition or venture capital interrupted the fund injection.

IBUonline is a B2B foreign trade platform and IBUonline thinks that it need specific laws and regulations to restrict the e-business online market, although in such cases the consumers did not suffer any substantial losses.

E-business needs to set up a higher threshold for venture capital to enter. Venture capital should support those e-business companies with good reputation or brand.

IBUonline is a competent B2B foreign trade platform which has favored by venture capital. You can go to the homepage for more details about foreign trade business integrated services.