Certain companies and individuals in the market, engaged in the unethical business practices are deceiving general public by inducing to make easy money and earn sky- high returns in a short span of time through the schemes that seek referrals and recruitment of new participants. TheseMulti Level Marketing and Pyramid
schemes are meant to fleece the hard earned money of individuals who fall prey to the incentives offered by the schemes. Companies and individuals associated with these schemes paint a very rosy picture of enormous profits and everlasting income.Participants at the very first levels may benefit from the scheme and receive the
promised income for some time while vast majority of the participants joining at the later stages would lose their entire investment without generating any income or profit. These schemes are devised in a manner that the new customer must get enrolled in a geometrical progression to endow profits to the existing members. As
soon as these schemes reach a certain saturation size, and there is no substantial inflow of new members who are basically the only source of profits, the whole structure collapses. Only a few people on top of the pyramid make money, the rest lose.
The general pub lic is cautioned not to be misled by advertisements of such lucrative schemes promising very high returns on referral or new participants joining basis,being launched in the print media, electronic media or through marketing executives. Such businesses pay hefty profits for a short period, but disappear after
collecting large amounts from public.
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