Direct seller convinced school leavers to invest in get rich quick scheme
(KL 28th)Some multilevel marketing company salesmen using dirty
tricks to fool inexperienced school leavers to invest a large sum of
money into get rich quick scheme!
The direct seller, for his own purpose to get rich quick, always
choose school leavers as prey, trick them to join company, after
becoming member, pay a large sum of money to purchase company product
for the purpose to build a business.
As a result, a lot of school leavers became members, and borrow
money from relatives to invest in the business, after the reality
turned out to be different from what they hoped, and discovered that
they are unable to have refund back for the money they invested
according to the contract they signed, and lost 10s of thousand of
ringgit.
2 cousins from cheras, Mr Chong(22, school leaver) and Ms Chong(22,
school leaver), after joined a MLM company last october, their upline
convined them to pay RM30k to do investment so they can earn big money
in short time.
Mr Chong said, he and his cousin paid RM30k each, including RM2000
of member fee to join the company, discovered that their upline is
cheating them, and decided to quit the business this March, but unable
to take back the money.
He said, after his upline convinced him to become member, always
trying to pursue him to take more money to do bigger investment, so
that they can become rich and drive luxury cars, Mr Chong then brought
his family to the company to know more about this business.
He said, his upline told him that after invested the money, and
within 6 months discovered that this business is not suitable for him,
he can quit and collect back 90% of the investment money.
He said, when he joined as member he signed a contract stating that
which products can refund and which cannot, however his upline didn't
explain this clearly to him.
He pointed out that when he want to buy products, due to the fact
that he dont understand the products his upline has recommended him a
list of products, which are all non refundable, and he lost RM14000 due
to non refundable products.
Meanwhile, Ms Chong said, she joined the direct sale via her
friends, after that she introduced her cousin to join the business too,
and when we discovered that our upline is trying to cheat us, and
decided to quit, we were informed that our products are non refundable
and caused us to lost 90% of our money.
She said, her situation is different from her cousin, when buying
the product her mother is helping her to pick most of the refundable
products, but her upline is playing dirty tricks, as a result she only
able to get refund of RM16000, and lost RM14000.
Chong cousins hope that noone else will be fallen into this trap and complained to MCA cheras.
Wu Xin Yi suggesting consumer department to set law to monitor direct sale company
MCA Cheras, Wu Xin Yi suggesting Consumer Department to monitor
direct sale companies to ensure them not using dirty trick to fool
their members.
He said, a lot of people complained and say that some direct sale
companies using dirty tricks to fool school leavers to invest a huge
sum of money into direct sale business, and caused many school leavers
to borprow money from relavites, as a result, business failed, and they
have a lot of debts.
He said, this is a big blow to school leavers before even they started to work.
He advises families that have any kids who just finished school and
go into the society to stay alert, so that their kids will not become
'prey' of illegal direct seller.
Today he commended on the 2 school leavers lost RM14000 because they trusted their upline.
He said, these direct sellers using "pay more and earn more" theory
to trick school leavers, including university graduates, to achieve
their own purpose to get rich quick.
He said, actually, according to 1993 direct sale law, after members
joined a direct sale company and wanted to quick, they are able to get
refund of member fee.
"However, these 2 victims Mr Chong and Ms Chong not knowing this
law and their upline didnt inform them about this law, they missed the
opportunity to get their refund."
He said, this 2 cases is mainly due to the direct seller personal
problem, and not relevant to the direct sale company, therefore he hope
that the direct sale company will monitor their members carefully and
take action on any direct sellers who spoil the company image.
Meanwhile, he said, according to laws, if the Chong cousins want to
take back 90% of the invested money, their changes to win the case is
very small.
He hoped that gov can change the existing direct sale law and pass
a stricter law to monitor direct sale activities, to prevent more
people fallen as victim