Pyramid selling might seem an easy way to make money if you are first in and there are a lot of "mugs" and fools around. But it is a fool's game and is very much against the law.
You need to know just how the law on such schemes can be broken. Read the full text below.
We provide you with a direct link to the relevant part of the Website for the Ministry of Consumer Affairs. Just click on :
. . . Ministry of Consumer Affairs.
You should also check out the Scam Watch
section ot the Ministry's Website. Just click on :
. . . Scam Watch - Ministry of Justice
Pyramid selling schemes are illegal in New Zealand under the Fair Trading act 1986.
The nasty little trick with these schemes is that the method of earning money depends mainly on recruiting more people, rather than through selling goods or services. Don’t be conned with smooth talking salespersons.
With most pyramid schemes there is a substantial joining fee. It is very unlikely that you will be able to make enough money through the scheme to cover your initial joining fee.
Generally the schemes do not work because the market of potential members is simply too small. For example, in a scheme in which you need to recruit 10 people ( who in turn each need to recruit 10 people ), there would need to be one million members by the time the scheme reached the sixth level.
Under the Fair Trading Act 1986 it is an offence to promote or operate a pyramid selling scheme.
We provide you with a direct link . . . .
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