Core Viewpoint - The article highlights the emergence of a new business model targeting elderly consumers through private domain live streaming and group buying, which often leads to deceptive marketing practices and financial exploitation of vulnerable individuals [3][8][15]. Group 1: Business Model and Practices - New stores labeled "国×优选" and "大×拼团" have appeared in cities like Zhengzhou, focusing on attracting elderly customers through low-priced goods and promotional tactics [3][4]. - The strategy involves creating WeChat groups where elderly individuals are lured with low-cost offers and then subjected to aggressive marketing tactics in private live streams [3][5]. - Criminal activities have been documented, with individuals using tactics such as offering cash rewards for participation and creating a sense of urgency around product availability to drive sales [5][8]. Group 2: Marketing Tactics - Live streaming sessions often begin with health-related discussions to instill a sense of urgency and fear regarding health issues among elderly viewers, leading them to purchase promoted products [6][7]. - Products marketed include various health supplements, often falsely claimed to treat serious conditions, which misleads consumers into believing in their efficacy [6][9]. - The pricing structure reveals significant profit margins, with some products sold at prices far exceeding their production costs, indicating a high level of exploitation [10][12]. Group 3: Legal and Regulatory Issues - Courts have documented numerous cases of fraud, with significant financial losses reported by elderly victims who were misled by these marketing practices [8][9][15]. - Regulatory bodies are beginning to take action against these practices, but the hidden nature of private domain live streaming complicates enforcement efforts [14][15]. - Despite legal repercussions for some offenders, the lucrative nature of this business model continues to attract new participants, perpetuating the cycle of exploitation [15].

Core Viewpoint - The rise of private domain live streaming scams targeting elderly individuals has prompted regulatory actions across various regions in China [1][12]. Group 1: Nature of the Scams - Numerous stores with names like "National × Preferred" and "Big × Group Purchase" have emerged, primarily focusing on attracting elderly customers through low-priced goods and promotional tactics [1]. - The marketing strategies employed include offering products at significantly reduced prices, such as "1 yuan for 10 selenium-rich eggs," aimed at enticing seniors to provide personal information and join WeChat groups [1][2]. - In these private live streaming sessions, elderly participants are subjected to persuasive sales tactics, often leading to purchases of health products and other items [1][3]. Group 2: Mechanisms of Operation - Criminals utilize WeChat groups to invite elderly individuals, offering incentives like red envelopes for participation, and restrict access to live streams through password protection [2][10]. - The content of the live streams often includes health-related discussions designed to instill a sense of urgency regarding health issues, promoting products as effective remedies for common ailments [3][5]. - The sales process is structured to create a closed-loop system where online orders are fulfilled through offline pickups, complicating regulatory oversight [10][11]. Group 3: Financial Implications - The profit margins for these scams are substantial, with reports indicating that some platforms achieve annual revenues exceeding 10 billion yuan [6]. - For instance, a product sold for 499 yuan may have a production cost of only 108 yuan, indicating a high markup and significant profits for the scammers [8][9]. - The average monthly gross profit for a store can exceed 70,000 yuan, highlighting the lucrative nature of these operations [7]. Group 4: Regulatory Response - Regulatory bodies are beginning to take action, with various local market supervision departments conducting inspections and identifying fraudulent practices [12]. - Courts have started to impose penalties on individuals involved in these scams, with sentences ranging from several years in prison to substantial fines [12].