Pyramid for Sale

Egypt is abound with pyramids. In the Philippines, we find a different kind of “pyramid” that gyps people of their hard-earned monies. In fact, Article 53 of R.A. 7394 of the Consumer Act of the Philippines specifically prohibits the Pyramid scheme in the sale of consumer products.

The law defines “pyramiding” or “chain distribution plan” as a scheme that bestows on a person, on condition that he invests, the right to recruit for profit one or more persons who will also be granted such right when they invest. In other words, the persons employing such a scheme derive profits primarily from recruitment of investors.

Recently, the Department of Trade and Industry (DTI) summoned the officials of the First Quadrant Philippines Inc. for violation of the Consumer Protection law. First Quadrant, whose alleged owners include DENR Secretary Mike Defensor and his wife’s family, is one of the 22 Multi-level Marketing (MLM) companies which is being investigated since 2003 for alleged involvement in pyramid ing scheme.

DTI’s Anti-Pyramiding Task Force was reported to have conducted preliminary investigation to determine the culpability of the First Quadrant. Special hearing is being held by the Bureau of Trade Regulation and Consumer Protection before it presents the case to the Office of Legal Affairs for formal hearings.

If found guilty by DTI, First Quadrant may be meted out various administrative sanctions that include a maximum fine of 150,000 pesos, cancellation or suspension of DTI permits, and payment of other damages.

In an interview of the Philippine Daily Inquirer last January 25, 2005, DTI Undersecretary Adrian Cristobal Jr. clarified, “Using MLM or networking scheme to sell products and services was not illegal itself. But when the scheme is used in a way that income is generated primarily from recruiting others into a company instead of selling products, it becomes pyramiding.”

On the other hand, First Quadrant officials vehemently denied that they are involved in pyramiding. In fact, First Quadrant said in a press statement that it was “cleared twice on this issue by DTI Assistant Director Jaime Lasaro Olamos last September 19 and December 22, 2003 respectively.

“ Following said clearance, First Quadrant was in fact admitted in October 2004 and became the first Filipino MLM company to become a member of the prestigious Multi-level Marketing International Association (MLMIA) based in Newport Beach, California, USA.

As we earnestly wait for the outcome of the investigation, we are enjoining the public to be careful in discerning the true nature of the companies that sought for investments. CAVEAT EMPTOR! Buyers Beware! Unless you want to waste time, money, and effort to one of the many pyramids for sale in town.

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JOKE TIME. From a reader who claim to have worked before with STARBOX Café:

“Waiter”, called the customer, “ in your ads it says that you blend your coffee, but this doesn’t taste like blended coffee to me.”

“Sit, it is.” replied the waiter. “It is a blend of yesterday’s and today.”

QUOTES:
The great thing in this world is not so much where we stand as in what direction we are moving.”
- Oliver Wendell Holmes Sr.
“We do not remember days; we remember moments.” - Cesare Pavese, the Burning Brand