DSA Applauds Moves To Tighten Up On Pyramid Scheme
DSA Applauds Moves To Tighten Up On Pyramid Schemes
The Direct Selling Association of New Zealand today applauded the moves by Government in tightening up on illegal Pyramid Schemes.
The damage such schemes can do to everyday people is huge and even the new penalties would do little to stop those unscrupulous people who promote such schemes.
“While the DSA has some concern that the new powers of the Commerce Commission need to be exercised responsibly they are a step in the right direction in the early intervention and closing down of Pyramid Schemes”, said Executive Director Garth Wyllie
Many of these schemes have managed to enter New Zealand and operate for months taking millions of dollars and then leaving those who participate out of pocket while the organisers have left the country with the funds before they are closed down.
It is important to stop them early and to be able to apply the fines to individuals since most of these schemes often have no company structure.
“Many hide behind the claim they are a network marketing scheme when they are really a pyramid” said Mr Wyllie
“Legitimate Network Marketing companies will be a member of the DSA and are listed on the DSA web site. These companies agree to abide by the DSA Code of Practice which forbids any illegal activities and gives both participants and consumer’s protection and recourse”, he said.
Legitimate network marketing companies sell real products and the rewards only come from the sale of those products and not from the recruitment of others into the scheme. They provide a genuine opportunity to build a business on the sale of those products through others.
The DSA works to
identify and close down illegal pyramid schemes through the
Commerce Commission as occurred recently with the Infinity
Conceige pyramid scheme.