New companies, same old pyramid schemes

Consumers here are once again advised to be wary of tactics employed by unscrupulous parties organising get-rich-quick schemes.

Concerned citizens said consumers should have learned their lessons from the past where their monies had been siphoned away in large quantities.

"However, our people were still gullible," they said adding that people had to really examine a few direct selling companies, which are only interested in accumulating members.

They added that consumers should only purchase goods they need and not purchase any excess products just to satisfy membership requirements.

"We cannot let our guard down as get-rich-quick scheme organisers are always looking for ways to cheat people," they said.

They said that some get-rich-quick scheme organisers would even advertise their business through the Internet vis-à-vis websites so they could not be detected.

"It is all the same story every time. They pay dividends earlier on and then disappear into thin air once the time is ripe," they said.

Some of the schemes currently advertised have been around since the 70s such as the Pak Man Telo Scheme, Scheme 350, Labu Peram Scheme and Strike Roulette.

These have been exposed.

Currently, there are no specific laws to control get-rich-quick schemes and there is an ever-increasing need to draft an Anti-Pyramid Scheme Act and Internet business transaction laws.

They said that some of the direct selling companies here are legal but also advised people to be on their guard over some members who were inquisitive to recruit down-line members, turning them into so-called "medical specialists" overnight.

"Products sold at direct selling companies are food supplements and not medicines. Prolonged usage may prevent diseases but do not believe in the miracles promised by inquisitive members."

They also warned members of direct selling who are civil servants who promoted products during working hours.

"We have heard complaints that some civil servants are more interested in recruiting members and advertising products rather than doing their jobs whole-heartedly.

"Such actions affect good governance and contribute to inefficiency in the administration," they said.

They said that such actions would be generally be frowned upon in the private sector. Such activities could cause employees to lose their jobs.