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Is it be a pyramid-ponzi scheme? Consumer Fraud

Discussion in 'Consumer Fraud & Scams' started by Nck4, Apr 30, 2014.

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  1. Nck4

    Nck4 Law Topic Starter New Member

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    Basically this is about a shopping community and the business opportunity is to enroll-recruit others, to become members by paying their fees. The members can use the membership card to get discounts for stores that are affiliated with The plan.

    However i am not sure if this is a pyramid, because even if you don't shop, your upline gets paid simply because you have paid your subscription. So could this be a pyramid scheme, disguised as a shopping community? It doesn't matter if you shop or not, as long as you pay your membership fee, your upline gets paid. Moreover if you enroll 3 members you don't have to pay your membership anymore, provided that these three pay their membership or each one of them finds 3 new recruits to pay for their subscription and so on and so forth. The company offices is based in Dellaware, if that makes any difference. Do you think that someone should reported to the FTC/SEC or maybe file a complaint. I like network marketing but i am afraid of illegal pyramids because they destroy our business. What do you all think?



    No links, please. No dot this dot that, either.
     
    Last edited by a moderator: Apr 30, 2014
  2. army judge

    army judge Super Moderator

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    You are free to report anything you wish. You don't need our approval.
     
  3. Betty3

    Betty3 Super Moderator

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    If you believe it might be an illegal pyramid scheme, it's up to you if you want to report it.
     

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