Consumers who purchased gold on the Maoduoduo platform have recently discovered that the platform is no longer shipping out orders or providing refunds, leaving their purchased gold and funds at risk of being lost. Many consumers have already filed complaints.
Maoduoduo is a “one-stop luxury shopping platform” that attracted numerous consumers to rush for gold due to its prices per gram being 20-30 RMB lower than the market prices. Consumers saw the opportunity to buy low and sell at a profit to acquisition merchants, driving a surge in gold purchases on the platform.
According to a report by Henan Radio and Television Station on November 15th, Ms. Li from Henan competed for gold on the Maoduoduo platform, participating in auctions at 10 AM and 8 PM. Although the process was challenging, she could save 20 RMB per gram, potentially earning 400 RMB on a 10,000 RMB gold purchase. Ms. Li accumulated a total of 100,000 RMB spending on gold through the Maoduoduo app. Initially, everything seemed normal, but soon she realized her orders were not being fulfilled, and even contacting customer service yielded no response.
Reports from The Paper also revealed that in November, Ms. Chen from Changsha, Hunan, bought 470,000 RMB worth of gold on Maoduoduo, but the platform failed to deliver after the orders were placed. By November 7th, Maoduoduo ceased responding to consumer messages.
On November 16th, messages from Red Star Capital Bureau indicated that several consumers noted Maoduoduo’s initial quick gold delivery, but for purchases made in early November, the platform neither shipped the orders nor issued refunds, ranging from tens of thousands to hundreds of thousands of RMB. Some consumers had taken loans to buy gold, now finding themselves unable to repay.
Currently, many consumers who bought gold on Maoduoduo with loans are facing difficulties due to repayment issues, with some forced to sell jewelry to settle debts.
Repeated calls from Red Star Capital Bureau to Maoduoduo have gone unanswered.
The Paper reported that some consumers visited Maoduoduo’s office, only to find it deserted. One consumer said, “Preliminary estimates suggest that over four hundred people have been deceived, with a total sum exceeding two million RMB.” Some consumers have already reported this incident to the police, and authorities in Shanghai have launched an investigation.
In response to the situation, Wu Fenghu, a lawyer from Beijing Jing Shi (Shanghai) Law Firm, analyzed for The Paper, stating that under Article 224 of the Criminal Law, if the platform lacks the actual ability to fulfill transactions and instead manipulates consumers into signing and executing large contracts through initial small transactions or partial fulfillment, it may constitute contract fraud.
Fu Jian, director of Henan Zejin Law Firm, told Red Star Capital Bureau that Maoduoduo initially attracted consumers with low-priced gold, potentially as a tactic to gain consumer trust. Later, by suddenly not delivering orders and refusing refunds, it exhibits characteristics of fraud aimed at deceiving consumers and wrongfully claiming their assets, especially if the platform lacks the actual ability to fulfill contracts but induced consumers to make substantial gold purchases, potentially constituting fraud.
Tianyancha data shows that Maoduoduo is affiliated with Shanghai Maige Gou Network Technology Co., Ltd., established on April 23, 2024, with a registered capital of 15 million RMB and based in Shanghai. Its business scope includes internet sales, wholesale of clothing and accessories, wholesale and retail of shoes and hats, wholesale of jewelry, wholesale of cosmetics, and personal internet live streaming services. The company owns two wholly-owned subsidiaries, Shanghai Maiyouhui Network Co., Ltd., and Shanghai Hutengjin Jewelry Co., Ltd., all of which are currently in operation.