Chinese citizens in Hong Kong protested Digital Crown Holdings Limited (DCHL) in 2013, claiming the company owes them HK$10 million. These demonstrations followed allegations of unsaleable product purchases and unpaid bonuses from the multi-level marketing firm.
DCHL, founded in 2000, operates Billion Venture International, which launched in the US but saw little traction. Both companies market lamps priced over $1000 US, alongside other luxury products. Their business model heavily favors affiliate recruitment, with compensation plans designed for this purpose.
The company lacks a traditional retail storefront. Affiliates use an "e-calculator" to buy products directly. The primary activity appears to be signing up as an affiliate, buying products from an upline, then recruiting new affiliates to buy from them. Revenue likely comes mostly from these affiliate purchases.
For thirteen years, DCHL has reportedly lured mainland Chinese citizens to join its scheme in Hong Kong, bypassing mainland regulations. This practice has led to a series of public protests against the company. South American regulators, by contrast, had recently begun stemming similar Ponzi schemes disguised as legitimate MLM.
Unhappy mainlanders marched twice within a month on Hong Kong government headquarters, demanding stronger multi-level marketing laws. The most recent march saw police with shields deployed to prevent protesters from entering DCHL's Causeway Bay premises.
Protesters claim they were pressured to buy hundreds of thousands of dollars worth of goods. These items, they allege, proved impossible to resell. They also state they never received promised bonus rewards through the company's system. The protest at DCHL's Causeway Bay offices continued for at least two days, with police maintaining a presence.