'Fire therapy' company accused of pyramid sales and false advertising

Tianjin-based Chinese herbal medicine company Quanjian Group is being investigated by police for suspected pyramid sales and false advertisement, tjyun.com, Tianjin's news portal reported on Wednesday.

Authorities are closing "fire therapy" venues over fire safety hazards, and are conducting a specific campaign against "irregularities" in the health product market following the incident, the report said.

The investigation team was established late last month after Quanjian came under fire for being accused of making misleading claims about "fire therapy" and its traditional medicines, and was also blamed for delaying the treatment for a cancer-stricken girl, according to the WeChat account Ding Xiang Doctor.

During "fire therapy," alcohol soaked towels are ignited on a patient's body.

Quanjian has also been accused of illegal pyramid sales, which is banned in China, plus improper promotion, unsafe health products and its franchised stores operating without a license, the website reported.

Tianjin-based Quanjian was founded in 2014, with registered capital of 400.8 million yuan (US$58.32 million).