Consumerism PYRAMID SCHEME CHARACTERISTICS
- Promotion of scheme or bonus award or other benefit is due to or solely due to member recruitment into the scheme, plan, or pyramid network instead of product sales, service rendered or intangible property selling by member.
- Bonus or other benefits is given to member due to or solely due to member recruitment into the scheme, plan, or pyramid network instead of product sales, service rendered or intangible property selling by member or other party.
- Written contract or statement describing the material term of agreement (including buy-back policy, cooling-off period, warranty and repayment policy) is not provided to the participant of scheme, plan, operation or pyramid network process.
- Compulsory purchase of goods, buy services or intangible properties or minimum payment or sales target become the condition for joining or bonus award or other benefit in the scheme, plan, operation or pyramid network process.
- Participants are required to purchase goods, buy services or intangible properties in an unreasonable amount which cannot be sold or bought in reasonable length of time. The freedom of purchase is denied and participants are forced to purchase selected packages to fulfill sales target which will qualify them for ranking and bonus within the scheme, plan, operation or pyramid network process.
- Repayment policy for goods, services or intangible properties purchased by participant or end user is not provided.
- Reasonable buy-back policy for current marketable goods (excluding seasonal products, no longer in market or special promotional item), services or intangible properties upon participant request is not allowed or not provided.
- Unreasonable condition within the scheme, plan, operation or pyramid network process for bonus award or other benefit.
- Withdrawal from the scheme, plan, operation or pyramid network process is not allowed.
- Participants are allowed or encouraged to purchase more than a single ranking or right to join the scheme, plan, operation or pyramid network process.