Pricing of products is the secret behind money circulation scheme

All money circulation schemes banned under the Prize Chits & Money Circulation Schemes (Banning) Act, 1978 mainly depend upon over pricing of products or services. Earlier, there used to be open money circulation schemes where the new members have to pay a certain amount of money and that would be shared by members from top to bottom. People who joined late lose their money as it would become impossible to find members to join the scheme. That is what called 'mathematical impossibility'.

The Amway invented the new way of robbing people's money by overpricing products and a Rs. 16 toothpaste is sold for Rs. 120 which is shared by the upline members. However, a sizable part of it goes to the company. That is how the company is lining its pockets making people paupers.

Now every tom, dick and harry entered the scene with the false promises of making members millionaires in a short span by selling overpriced products. Herbalife does the same. Forever Living Products does the same. A Rs. 100 worth aloe vera product is sold for Rs. 975 and the members would be given a discount of 25 per cent to 43 per cent depending upon the product. The Company and the top level members would share the booty. People who lose money in the transaction never suspect that the company's scheme is inherently deceptive and moreover, they blame themselves for not working hard to find new members. That is how their mind is tuned not to question the scheme of the company.

I would like to take this issue to its logical conclusion by making people aware of the deceptive practices and set the law into motion to arrest these tendencies.

Anyway let us start with bringing awareness among people about the fraudulent activities of these companies.

Let us explore more on this front later.