A deep-seated tension between traditional cultural heritage and modern consumer protection has surfaced in China's direct-selling industry. Suzhou Greenleaf Technology Group, a licensed direct-selling giant, is facing intense scrutiny over allegations of deceptive marketing that weaponizes ancient medical philosophy to sell mundane hygiene products. The company’s flagship 'Magnetic Power' sanitary pads claim to improve blood circulation and prolong life by referencing the 'Huangdi Neijing,' a foundational text of Traditional Chinese Medicine (TCM).
Despite these grand medical claims, the products are legally registered only as 'Xiao' (disinfectant) grade, a category strictly prohibited from claiming therapeutic or health-preserving benefits. Medical experts have been quick to debunk the underlying 'science' of the magnetic and far-infrared technologies advertised by Greenleaf. Dr. Meng Yanbing, a specialist in TCM, noted that the energy levels in such products are virtually undetectable and lack the sustained contact necessary to influence deep-tissue physiology.
Beyond hygiene products, the investigation extends to Greenleaf’s digital ecosystem, specifically its 'Greenleaf Huigou' mini-app. The platform reportedly lists dozens of ordinary nutritional supplements—such as collagen drinks and protein powders—under the 'Health Foods' category. In China, this category is reserved for products that have secured the prestigious 'Blue Hat' certification, a rigorous registration process involving clinical evaluation and state approval.
Industry analysts point to a 'dual-track' operational model that allows Greenleaf to navigate regulatory gray zones. By combining traditional retail franchises with a more opaque direct-selling network, the company creates a fragmented accountability structure. Store employees often plead ignorance regarding product certifications, while private digital channels are used to push high-margin products with aggressive, medicalized narratives that would likely be flagged in public advertisements.
Legal experts warn that this strategy of 'borrowing TCM authority' to bypass health regulations constitutes a significant compliance risk. Under China's Advertising Law, non-medical products are strictly forbidden from using medical terminology or suggesting curative effects. As regulators increasingly focus on the integrity of the health and wellness sector, companies like Greenleaf may find that their reliance on cultural pseudoscience and digital misclassification invited the very legal crackdown they sought to avoid.