The Fair Trade Enforcement Bureau of the Department of Trade and Industry is advising the public to be cautious of online pyramid schemes and chain distribution plans that are running amok in Facebook, Instagram and other social media.
According to DTI Assistant Secretary Ronnel Abrenica, there are businesses that take advantage of their customers by luring them into pyramid sales schemes under a façade of a genuine financial opportunity.
- “PM for the price” violates R.A. No. 7394 Consumer Act — DTI
- Dealerships no longer allowed to sell vehicles on ‘installment-only’ basis — DTI
These illegal activities, however, focus more on recruitment and bringing more victims into the fold by promising unrealistic returns in exchange for money. The products and services they’re meant to promote and sell are barely given any attention nor are they marketable enough to let recruits recover their initial investment.
If you find yourself a victim of or know businesses participating in online pyramid schemes, you may contact the DTI for assistance via their hotline at 1-DTI (1-384) or email at [email protected]