The recently unearthed story by Headlines Today about speakasiaonline has confirmed our argument that it is a money circulation scheme. The TV channel presented the story well but it missed the crucial point. The speakers talked about the loopholes in the law. But the law is very clear and it was enacted way back in 1978.
The Prize Chits & Money Circulation Schemes (Banning) Act, 1978 could be used to check such crimes effectively.
The mother of all scams Amway India was booked under the provisions of the same law and later several criminal cases were also filed against other companies like GoldQuest International, Herbalife, Forever Living Products under the provisions of the same enactment.
It is not true to say that there are loopholes in the law to check this menace. The only problem is the dearth of complainants. The Madras High Court way back in 2003 pointed out in Apple FMCG case, the authorities close the stable only after the horse escaped.
With the help of the aforesaid enactment such type of frauds could be brought to book. Section 2 (c) of the enactment clearly defines the money circulation scheme and Section 7 empower police on receiving information to raid the premises and seize incriminating documents. So it is not true that there are no laws to curb the activities of money circulation schemes or ponzi schemes.
7 comments:
dear shyam can you give me one example where one is getting big benifit in amway (without any effort)
Just read the judgement of Andhra Pradesh High Court to learn how the Amway is lining its pocket with people's money.
My dear friend, as you know that we have been in touch since a year.
In that year I have recruited 3-4 people.
And My income is mainly from my personal retail.
roughly I retail 20000 - 25000 a month.
I do it in my spare time and not as my profession.
But when you refer to andhra pradesh high court then I should have enrolled 103 people through 6-4-3 way.
Whats more surprising that it was an example which amway give for the sake of making it simple.
when you look at my story its not that way. what would you say in this case
You tend to forget what is written here or you have poor understanding of things. It is the Amway which is minting money all the time. That is why I ask you to read AP High Court judgement.
My Dear Shyam....
If u see that Amway is Minting money.. I dont find that bcaz they hv 100% money back satisfaction guarantee on 30% product use and total investment on 995 of joining...
Its very transparent .. its always project this point as USP.
Its has given any or every distributor and equal or open transparent opportunity...
My friend i m a distributor in forever living products and i have no complaints regarding the company as it is the best in the industry and i have not found anything negative about it. And Dont think that all MLM companies are scam there are few genuine companies also. You are just highlighting only negative part.
How much money you have invested to purchase products and how much you are actually making? Can you sell these exorbitantly priced products to anyone? Kindly introspect. You would be losing money.
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