The case of Cyrus Company, which made headlines at the beginning of December, is another one of the economic corruption cases in Iran, this time involving a staggering amount of 3.7 billion dollars in the Chai Dabsh scandal. The focus of this registered company, named “Cyrus Processors I.S.A”, was on the mobile phone market, claiming to provide phones such as the iPhone 13 to its customers for around 20 million tomans, a tempting price compared to the usual price of these types of phones in the global market, which is equivalent to over 36 million tomans. The purchasing method at Cyrus Company was through pre-ordering, where the individual had to pay the full amount for the mobile phone and receive it after 35 working days.

However, the formula of this company was the famous Ponzi scheme, in which they would collect the maximum amount of capital from open accounts. In this method, the initial groups would profit well and the cycle would continue until the first group decided to end the game. The justification of the owner of this company for the strange prices of their phones was buying them from cheaper markets such as Dubai and eliminating intermediaries; a claim that is refuted by the fact that he did not have permission to import phones. As a result, the only magic wand of this company and its owner is the same Ponzi scheme that, after ten months of operation and gaining people’s trust by delivering phones, suddenly ended and there is no news of people’s money or phone deliveries.

This company, which in the past years was active in repairing and selling phone parts in the market, has entered the pre-sale market of phones – especially iPhones – since the beginning of this year and has attracted people’s attention with lower prices than the market. Although an accurate statistic of the amount of this economic corruption and the number of victims has not been announced, some media outlets – such as Fararu news agency – have reported that this case has 100,000 complainants, which can estimate the amount of this economic corruption to be around 2 trillion tomans. Masoud Staeeshi, the spokesperson of the judiciary, had previously announced the registration of one thousand and five hundred complaints against this company in Tehran, but Amirhossein Sharifian, the 27-year-old owner of this company, claimed in an interview that his debt amount was much lower and he had announced a debt of 150 billion tomans and the seizure of his assets worth about 100 billion tomans

The number that Kourosh Company announced for purchasing their phones was unrealistic and suspicious for anyone familiar with the exorbitant prices of the dollar in the Iranian market and the intermediaries involved in the process until reaching the final price in the store. People who had previously heard about the fraud of pyramid schemes – such as GoldQuest – or had fallen for their deception, had doubts. Of course, it is certain that in any part of the world, when a product or item becomes cheaper, it attracts attention and people become eager to buy it; especially in the market for iPhones, where the 15th series of this phone was introduced to the market of smart technologies in September of last year, and everyone, especially the younger generation, was excited to buy the iPhone 14 and 15.

In Iran, however, even buying and owning an iPhone has a different story from other parts of the world. Ayatollah Ali Khamenei, the leader of the Islamic Republic, criticized the import of American iPhones as “luxury goods” that cost a lot of foreign currency. Therefore, restrictions were imposed on the entry of phones over $600 – especially American “luxury” phones and Apple’s series 14 and 15 – since 2019. In fact, these restrictions and lack of registration only applied to American phones and did not include expensive Samsung Korean and Xiaomi Chinese phones. It also seems that this ban and restriction only applies to ordinary people, as officials and their children are interested in the same American iPhones and use the latest models as well. Photos of “Zainab Soleimani”, the daughter of Qasem Soleimani, at government ceremonies holding the latest model of American iPhone Pro Max, are evidence of this claim. Therefore, the issue here is

Advertising

Celebrities for Kourosh Company

One of the tactics that Kourosh Company used to build trust and convince people who were hesitant was advertising through some famous figures – known as celebrities in Iran. People such as football players, actors, and well-known bloggers repeatedly promoted Kourosh Company and confirmed its activities, which resulted in a large number of customers pre-ordering their phones in a short period of time.

The presence of famous and beloved individuals in advertisements – whether as successful professionals or due to their beauty and attractiveness – is one of the classic methods for advertising and building trust among customers. Nowadays, with the expansion of the virtual space and the followers’ tracking of famous individuals on social media pages, and even investigating their daily lives, a closer psychological connection has been formed between them and the public. This issue has become an important marketing and advertising model and method, and a facilitator for gaining trust, creating motivation, and visualizing and giving life to a product in the threefold relationship between the product, producer, and consumer.

In addition to traditional advertising methods, influential individuals also play a prominent role in promoting and advertising products for brands among their followers in the fields of luxury, fashion, and beauty. As the name suggests, influencer marketing refers to a set of activities aimed at promoting a product through influential individuals (the equivalent of the English word “influencer”). Influencers typically share their opinions and recommendations about using a particular product with their followers on social media, effectively advertising for brands. Their posts have a significant impact and garner millions of reactions from people around the world. In fact, these individuals have become a showcase for promoting a lifestyle and exerting psychological influence on ordinary people. Due to their seemingly independent and free communication with the public, they have closer interactions with their audience, and the stories they tell about a product are more appealing and engaging, creating a stronger sense of visualization and connection for individuals. They strive to advertise the most beautiful and creative images and content on their showcase using smart technologies to attract more

In Iran, despite problems such as the iPhone 14 not being registered and being scarce, the high prices of the 12 and 13 models, and the lack of updates for older models by Apple, due to extensive and luxurious advertising of these phones, there is still a high demand for purchasing them. This issue has also led to people trusting the advertising of Kourosh Company – especially by celebrities and influencers – in the absence of a transparent market, pricing system, and weak monitoring and judicial system. They were unaware that the celebrities who they trusted had also jumped on the bandwagon of advertising and without considering the reasons for the lower prices and verifying the accuracy of Kourosh Company’s claims, they took the risk of pre-purchasing a product from a private institution without obtaining necessary information and ensuring their legal and necessary commitments. In the videos they released after the exposure of this fraud, they referred to the city billboards, monitoring and responsibilities of monitoring and judicial institutions, but they did

Supervision of responsible institutions.

Officials of the Islamic Republic who, in addition to the smallest issues of the people in Iran, such as the presence of a few strands of women’s hair and the way they dress, have interference and supervision, and apparently once even shut down this same Korosh Company due to women’s immodesty, had no supervision over the performance of this company. The news of the blatant fraud of this company, despite passing through multiple filters of executive and supervisory agencies and after several months of shocking activity, is shocking; it is even said that the owner of the company did not have a passport but managed to escape the country five months ago. No one can imagine that economic corruption has become so entrenched in the country that one person can defraud the people in such a way in plain sight.

We must ask why the supervisory, executive, and judicial institutions did not go after this company and did not enter its suspicious activities? Why are phones that are not registered in Iran being sold? If Apple does not update its previous series of phones, why are these phones still being sold to people? Why is the sale of this product possible with special privileges for some companies like Kourosh Company (former) and Mobile Mousavi (now), but not for other market traders? Why are necessary guarantees not taken from these companies in return for the money they collect from people? How are these extravagant and luxurious advertising costs and spaces being provided in the current economic situation of Iran? These questions and hundreds of others about the sick and corrupt economy of the Islamic Republic and its institutions, companies, and economic funds, which are now managed by special groups through a system of brokerage, pyramid schemes, and Ponzi schemes, come to mind.

If legal responsibility does not directly involve celebrities in this matter, they still have a role and moral responsibility to participate in a suspicious scam. They cannot simply shrug off the minimum moral responsibility of this issue by saying that advertising is part of their activity. Many people have invested their billions of dollars in this path and have lost it. Surely this will damage their credibility among the people; because they gain their popularity and fame from these very people.

The first issue that will come to people’s minds is mistrust. How there is no transparency, accuracy, and honesty among these celebrities who promote products without any recognition or assurance. Another issue is the commitment to certain personal values among famous individuals that is important to their audience. Some of these famous people are in agreement with the policies of the Islamic Republic in any situation and are present everywhere. In fact, they are government artists and football players who move with the direction of the wind and are present in all government programs, films, competitions, festivals, and events, being praised and receiving valuable gifts. This is while many others, who are freer individuals, stand with the people in protesting and opposing the political, social, and economic system of the Islamic Republic, considering the interests of the people and standing with them.

Consumer trust and rights

Consumer protection laws in many countries – such as European Union countries – are serious and strict, with the aim of protecting consumers from harm caused by substandard or unsafe products. These laws typically hold all parties involved in the supply chain, including producers, distributors, and advertisers, responsible for ensuring that products comply with safety standards and are suitable for their intended purpose. If a celebrity advertises a product that is not up to standard or does not match the advertised claims, they may be held responsible for misleading advertising. European laws often prohibit misleading or deceptive advertising methods, and celebrities who endorse such products can be held accountable for spreading false information.

In these countries, famous individuals who endorse inferior products may face legal disputes from consumers who have suffered damages or financial losses as a result of purchasing these products. These lawsuits can result in compensation for various damages incurred by the consumer, including medical expenses, financial losses, or economic damages caused by purchasing defective products and fraud. Regulatory authorities in European countries, as well as the European Commission, have the power to impose fines and penalties on individuals or institutions that violate laws or regulations protecting consumers. These penalties can vary greatly depending on factors such as the financial harm caused to consumers, the intentional nature of the violation, and the financial resources of the offender.

Losing credibility and business transactions, in addition to legal consequences, is another punishment that may await famous individuals who advertise low-quality and deceptive products. Their negligence and irresponsible behavior not only damages their reputation with companies, but also their credibility with their audience. The public backlash and negative advertising resulting from involvement in such scandals can lead to loss of transactions, support, and other profitable opportunities for them. As a result, these individuals must be very cautious and participate in advertising activities with knowledge and awareness, and evaluate its various aspects.

In the laws of these countries, even criminal responsibilities have been foreseen, in severe cases – which include severe negligence or intentional destructive behavior – famous individuals who advertise low-quality goods may face criminal charges that could result in fines, imprisonment, or other punitive measures.

In Iran, however, the spokesperson of the judiciary has announced that celebrities must return the amounts they have received for advertising this company to the government fund according to the law. The celebrities themselves have shown no significant reaction or proper apology to the people. Some even claimed that this matter does not concern us because the judicial and supervisory bodies have given permission to these companies and they have also appeared in advertisements for competing companies in the same way.

As a result, in a country’s economic system where there is no transparency and its top institutions engage in large-scale financial corruption and embezzlement – the latest being the Chay Dabesh scandal which has not been transparently reported to this day – and its judicial system is accused of corruption and injustice, and economic criminals are not prosecuted and punished, and special and powerful groups and organizations rule over the political and economic system of the country, it is impossible to understand who the people should blame and who will be held accountable for these frauds. The important lesson from this situation is to not trust these advertisements in the future and to not have confidence in institutions that are managed by special individuals with special cover.