Advocate Nishant Mehrotra practices at Allahabad High Court. He enrolled with the Bar Council of Utt... Read More
Recognition of Pyramid Selling Scheme
How Do I Recognize A Pyramid Selling Scheme?
- Sector-1, Noida
Many pyramid schemes often disguise themselves as sellers collectors' items, software, training programmes, etc, when all they are interested is to make a quick buck through recruitment. Members of the public who attend sales talks must be vigilant to such schemes. Illegitimate MLM schemes usually share the following characteristics:
-When the promoter hype about how easy it is to earn money, people can get very rich in a very short time and that the way to earn money is by recruiting others to join the scheme;
-The so-called product that you are supposed to sell is not something you would normally buy at its price;
-Participants are required to invest money into the scheme, whether in the form of a joining fee, or buying inventory.
-Remember - there is no easy money, you must believe in what you are selling and you should not put your money at unnecessary risk.
Answered on 28 Sep 2018
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