Source: Radio New Zealand
123rf.com
The Commerce Commission is warning consumers about a suspected pyramid scheme operating in Hawke’s Bay under the name “Live Good”.
The commission said the scheme promotes health supplements, but members’ payments appear to rely on continuously recruiting new people rather than selling genuine products or services.
Commission deputy chair Anne Callinan said the scheme – marketed as an “affiliate compensation plan” – carries the hallmarks of a pyramid scheme.
Marketing for the scheme is spread through Facebook, Instagram and TikTok, with new recruits funnelled into groups with names such as The Official Diamond Rush and Freedom Lifestyle Revolution and other New Zealand-based Facebook groups linked to this scheme.
“While the investigation is in its early stages, we believe we have a duty to publicise this potentially illegal scheme so Kiwis are aware of the risk of becoming involved,” Callinan said.
“It is important that any potential harm is limited.”
The commission is urging anyone who encounters the scheme to exercise caution and seek advice before investing into it.
“It is crucial people do their due diligence before becoming involved in schemes of this nature – if something seems too good to be true, there’s a good chance it is,” Callinan said.
Separate concerns over Wellington-based operation
Separately, the commission has received complaints about a Wellington-based cryptocurrency scheme.
The scheme originates overseas and was initially known as TXEX, but has several other names, including UICEX, CR GLOBAL, Signal Trader, BG Wealth Sharing Group and DSJ EX.
The commission’s interim view was that it was not a pyramid scheme, but it repeated a warning from the Financial Markets Authority in relation to it.
The scheme encourages people to invest in cryptocurrency investment trading platforms, and promises significant returns on investments.
“These schemes entice people by promising high returns quickly and an opportunity to create ongoing wealth, which is typical of these scams,” Callinan said.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
