Direct selling lobby group representing Amway, Herbalife and Avon calls for crackdown on Ponzi schemes | Fin24 - News24

SA's direct selling industry wants to see harsher punishments for creators of Ponzi schemes, saying these investments scams are hurting the credibility of legitimate businesses.

SA's direct selling industry wants to see harsher punishments for creators of Ponzi schemes, saying these investments scams are hurting the credibility of legitimate businesses.

Getty Images

The Direct Selling Association of South Africa (DSA), a lobby group that represents the interests of companies such as Amway, Herbalife and Avon, has called for harsher punishments for the masterminds behind Ponzi schemes, saying the investment scams are hurting the credibility of legitimate businesses.

Ponzi schemes, which are illegal, are a type of investment scam in which early investors make money from the investments of later investors.

"The most significant way in which Ponzi schemes affect our industry is diminished credibility of legitimate direct selling businesses because more often than not, they tend to fashion themselves as direct selling businesses," said the DSA's chairperson, Rajesh Parshotam.

Subscribe to News24 for just R75 per month to read all our investigative and in-depth journalism.

Comments

Post a Comment

adsT

Popular posts from this blog

100 Legit Direct Sales Companies (Perfect for Moms Who Want to Work from Home!) - MoneyPantry

Image
If you're on the hunt for a list of direct sales companies, then this is the post for you. Having your own business is something that many people dream about. Imagine getting paid to sell everything from makeup to health and fitness supplements? A lot of people would love to start making money selling stuff from home. But, where do you even start? From designing products to getting them manufactured to finding a place to actually sell stuff, selling your own line of products can actually be really tough. That's why direct sales companies, or multi-level marketing (MLM) companies as they are also often known, are an option that many people consider. Need Easy Extra $300+/Month for Free? KashKick : Get paid directly into your PayPal for watching videos, surfing, shopping and more. Join KashKick Now! InboxDollars : Paid over $57 Million to members to watch videos, take surveys, shop and more. Get $5 instantly! Earn Haus : Earn up to $25 per survey. Plus same-day payment...
Read more

MLM companies in Utah: Why there are so many, links to LDS Church - Salt Lake Tribune

Image
Driving along Interstate 15, there are many indicators of Utah's status as the unofficial capital for multilevel marketing — from multiple headquarters in Utah County to billboards to Young Living's lavender farm in Juab County. With more MLM businesses — or, as the industry and many economists call them, direct selling companies — per capita than any other state, Utah has become the "global hub" for that line of work, according to research from the University of Utah's Kem C. Gardner Policy Institute. The MLM model often is touted to prospective sellers as a way to make money while working from home or on a flexible schedule. However, as the Federal Trade Commission wrote in a July 2022 article, "most people who join legitimate MLMs make little or no money. Some of them lose money." There also are cases, the FTC wrote, in which "people believe they've joined a legitimate MLM, but it turns out to be an illegal pyramid scheme that steals everyth...
Read more