INDIA STILL IN A STATE OF CONFUSION OVER MLM
SAVE MLM IN INDIA
Ed. Note: If you go to Bombay you will find 100's of MLM Companies in small shops literally door to door. They stand outside their doors hawking their latest pay plan "102%" or your money back. Some actually products. In all this MLM area is about 5 linear miles. It has been about 10 years since I have been back. What stuns me with all the scams and hype companies that India can't get it's act together about (1) what a scam is (2) wether they will fall under state or federal juristiction.
After the Amway debacle where Execs were arrested for activity they had no relation to it still seems India cannot get it's act together. A large newspaper there wrote that in the U.S. the states controlled all MLM Law. Since I wrote an overview for a University doing a paper for the legislature years ago I fired back in the comments section.
NEWS PAPER QUOTE - The United States
Has one of the oldest and largest quasi-federal regulatory structures. State-specific laws regulate direct selling, not central law. UR. ED. fired back THIS IS NOT TRUE!!!! The U.S. Federal Trade Commission has controlled MLM by Bringing Miscreants to trial and setting precedent law for the entire U.S. The states pass laws following most of the actions by the FTC. If the FTC speaks MLM Companies jump! In some cases they work in tandem. To say that the states set MLM law is totally incorrect! Send a Fact finding Mission to the U.S.
As scams related to fraudulent direct selling, multi-level marketing (MLM) and illegal money circulation schemes hit the nation, the government seems to be in a bind on what exactly defines an illegal activity from a genuine business model in this sphere.
Though the issue of lack of regulatory clarity to differentiate genuine direct selling and MLM companies from fraudulent pyramids and ponzi schemes has been hanging fire since early 2000, it is in the last couple of years that the matter has taken the centre stage following a series of scams.
However, till date, despite three inter-ministerial groups (IMGs) working in tandem - the latest being the one constituted after the Saradha scam-- there is still no clarity over difference between direct selling, MLM and money circulation schemes and what kind of activities attract the provisions of the Prize, Chit and Money Circulation Schemes (Banning) Act (PCMCSA), 1978 and what does not.
Three different departments of the government--consumer affairs, corporate affairs and financial services-- are working at various levels to clear the air over this critical sector, but none has yet managed to lay down clear guidelines, even as India was ranked 11th among the countries having top direct selling businesses in 2009-10.
5/30/2013 India Ponzi’s - The police in the eastern state of Assam have arrested six executives of Mavrodi Mondial Moneybox, including three Russians, for running a pyramid scheme, the Times of India reporte on Thursday. The police believe that the three Russians, identified as Alexei Muratov, Danis Rosaov and Andre Kilyn, the firm's representatives in Mumbai Dinesh Kotian and Rimish Balan, and Nabajit Das, a local agent in Guwahati, were duping customers in Assam into joining a pyramid scheme once used by the infamous Russian company MMM. One of the Russians allegedly advertised the company by pretending to be a journalist, the newspaper reports. He even fooled the local police and reportedly recruit several!
Last April, the police in another state, Andhra Pradesh, issued a warning, telling people not to invest in Sergei Mavrodi's MMM scheme widely advertised on the Internet, saying investors risk losing their funds. To join the scheme, local residents were asked to contribute 5,000 rupees (about $90). Reports said the Indian MMM entrepreneurs sought to promote their scheme in a number of Indianstates
Originating in Russia MMM suckered Between 10 and 15 million people who lost their investments in Sergei Mavrodi's, matemathician turned fraudster, first MMM pyramid scheme in the early 1990s. The first pyramid lasted around three years and collapsed a year before the 1998 default which shattered the system of short-term government bonds (GKO), and the government stopped paying its internal debt. Mavrodi was sentenced to four and a half years in prison as a result. After he was released, Scumbag Mavrodi announced a new pyramid scheme in early 2011, MMM-2011, asking investors to buy so-called Mavro currency units. Several Russian officials and public figures denounced this venture as another fraudulent scheme. IT APPEARS The Russian Scam MMM has hit a hot spot for scamming in India
INDIAN AMWAY CORPORATE DIRECTORS JAILED
AMWAY LEADING UP TO JAIL TIME
Distributors buy Amway products at Distributor Acquisition Price (DAP) and may resell products at a retail price, not to exceed the maximum retail price, as published. In this case, the Distributor's income would be the difference between the DAP and retail price. SOURCE: FIRSTPOST 2013-05-28 07:29:00
SECRET PYRAMIDING STARTS RUNNING UP COMPLAINTS
Amway Distributors were charging 10 times the value of their product. For instance, they sold product priced at Rs 340 at anywhere between Rs 2,700 and Rs 3,400...Also, they were involved in money chain, which is prohibited under the Prize Chits and Money Circulation Schemes (Banning) Act 1978..SOURCE: FIRSTPOST 2013-05-28 07:29:00
EASY MONEY INVESTORS – HARD TO REFUND BIG MONEY IN PYRAMID PRODUCTS
With the call of easy money, they have been luring people to come and invest. And in turn, the new members had to get more people and this was leading to illegal money circulation. As a result, we (Police) had received several complaints against the company and we decided to arrest the officials.. SOURCE: FIRSTPOST 2013-05-28 07:29:00
THEN WHAT HAPPENED AT KALPETTA: Network marketing firm Amway's India chairman and CEO William S Pinckneyand two company directors have been remanded to 14 days judicial custody by a local court here. Pinckney and directors Sanjay Malhotra and Anshu Budhraja were arrested by the Wayanad crime branch (economic offences) wing from Kozhikode on Monday in connection with three fraud cases registered in Wayanad district. Kalpetta’s top Judge N Ravishankar last night threw them in jail for 14 days. They were booked under the Prize Chits and Money Circulation Schemes (Banning) Act (PYRAMID SCHEME ACT) based on complaints filed by two persons in 2011.
Last year the crime branch had raided 3 Amway major center as part of its crackdown on money chain activities. The company's godowns in these centres were also closed and goods seized.
AMWAY NO REFUNDS ON PYRAMID PRICED PRODUCTS
HARD TO GIVE MONEY BACK ON PRODUCTS MARKED UP 10X FOR PYRAMID
What can best be described as a routine consumer redressal issue or complaint, has been misinterpreted and booked under the Prize Chits and Money Circulation Schemes (Banning) Act 1978. This has repeatedly been a challenge not only in Kerala but elsewhere across India, for the direct selling industry
SOURCE: FIRST SOURCE (BY TELEPHONE) & MSN India 2013
UR. EDITORS NOTE: I bet that those Amway Corporate Directors in India pay close attention to what the troops in the streets are doing NOW! Either that or give refunds for Pyramid priced product (loosing proposition). I am always interested in Indian MLM policy because I wrote an outline for MLM Management in country (with definitions). It made it to Parliment but never got voted out approved.
INDIA MLM - NETWORK MARKETING IN A MORASS
Sept 2012 – India is in disarray over the lack of MLM laws or guidance. The public is calling for clarification. Over three years ago, the MLM Watchdog contributed to a book that the University of Prue (India) was putting together. This book was to review world-wide standards based on common sense about MLM legal requirements. It was to go to the Indian Parliament. Years have passed, and no standards have developed in India. Scams are worse than the U.S. or Singapore in the number that thrive on Indian streets. .http://economictimes.indiatimes.com/Analysis/Remove_policy_ambiguity_on_direct_selling_industry/articleshow/3483601.cms
GOLD QUEST BEING SHUT DOWN
July 2011 - At last, the evil gold quest being shut down, no customers and a binary that is a pure money pumper.
Gold Quest Chennai Complaints Rise
SRI LANKANS CAUGHT IN WEB PYRAMID
October 2006 – A Ponzi-style scheme masquerading as a key punch outsourcing company scammed people out of millions of Ruppes. The scam Seagullsoftwares packed up bags in the dark of the night and left the country.
MLMIA TO BOOM IN INDIA
June 2005 – The Multi-Level Marketing Association has implemented it’s Global Expansion Plan to expand It’s reach to India after setting up a base in Singapore. N. Khanagendrran, President and Chief Executive Officer of Chennai-based Conybio Healthcare (India), will be the President of MLMIA India. Ed. Note: your editor is Legislative Chair for the MLMIA and has already submitted material to a study being done in India on the implementation of MLM laws there.
INDIA HIT BY OLD US WORK FROM HOME SCAMS
May 2005 – These Non-MLM scams of work from home online have moved to India. These scams ask for money to get folks a work from home business for a fee. They get a worthless list. Worse yet, are Ad Placers online where there is no payment except for signing up other people that pay money to join. The scammers in India picked up the ideas after the US had already started throwing crooks like this in Jail. Too bad there is not an International Authority that can track the Intellectual transfer of scams between countries.
INDIA SOCIAL GROUP EXTORTS MLM COMPANY
21 April 2005 – A social group Chhava Sanghatana (which is like the Elks in the U.S.) attempted extortion on an MLM Company Samruddha Bhara, near Pune India. The extortionists asked for money and a car. The police picked up the Extortionists and are investigating their claims again the MLM Company. Ed. Note: Extorting MLM companies is a common occurrence in India
POLICE BORROW MONEY? FAT SCAM!
Aug 2004 – Borrowed money my foot!! Long held in MLM lore is that if you want to run a scam in India or a legit MLM is that first you get the local police to take a pay off!!! They then report you to the national government as having been inspected and legal. Even if it is a SCAM! The Indian National Government is INFECTED at the roots! So if your company is going into India expect local payoffs to the police to be on the National roster of legit companies! Hang on Lust and Money! > http://newstodaynet.com/21aug/ld4.htm
HISTORICAL INDIAN FAN COMPANY GOES MLM
April 2004 - Kedia Stride a spin-off of Kedia fans very intelligently started an MLM company with consumables for a back end since fans last too long! Kedia fans are used throughout the orient and are a legendary name. This shows the power of MLM as a divisional diversification for major companies worldwide. http://newstodaynet.com/17apr/bu8.htm
CHARGESHEET READY -- POLICE MOVING IN
Apr 2004 -- The police started action last week on Wednesday. This appears to be the largest scam ever pulled by one single company in Chandigarh. This rollover Pyramid scheme which duped almost 27,000 persons sent shockwaves through the whole country. The pyramid scheme was to roll people into new companies and take the money of the people who made money in the small pyramids.
NEW GOLD SCAM REPORT FROM INDIA!
- Prime Goldbiz has worked its way into the U.S. It looks a lot like the old Gold Unlimited Binary plan that was shut down by the Feds! There are NO profit margins in gold it is a "commodity" so it is hard to mark up gold and sell it to customers! Prime GoldBank, a UK-based company is supposedly behind this one and is fool buzzing newbies with financial terms. Here is a report from India on the Goldbiz pyramid scheme scam! Slow load website!
MLM IN INDIA IS GOOD THESE SCAMS AREN'T - USE THIS TO LEARN TO STOP SCAMS THAT HURT THE LITTLE PERSONS.
EDITORS NOTE INDIA
India is a great country with nice people. MLM has been legal there since 2000. They are still working on how to define pyramid scheme vs true MLM. It is a little like the wild wild west. In Bombay 5 miles of a street that are door to door MLM companies. People walk down the street window shopping for an MLM company to join! There are many Good MLM's in India.