Pyramid Schemes

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Posted: Wed Feb 14, 2007 2:44 pm

I have been getting emails from a pyramid scheme for probably 18 months, I have the details if anyone is interested - PM me. But the question is, is there any kind of bait for these guys. I could just pretend to be interested but wanted some advice on how to get them to waste serious time on it. I haven't been able to come up with any decent ideas at all.

These particular schemers are well known and I have read up on the net some stuff about them.

Ideas please?

Posted: Wed Feb 14, 2007 2:59 pm

I don't think it's worthwhile trying to bait pyramid scheme scammers. IMHO it's better to focus energy on spreading awareness about such scams to avoid people falling for them. Oh, and depending on the exact nature of a scheme, you can of course report their websites or emails to the ISP because these schemes are illegal in almost all cases.

Posted: Sat Feb 17, 2007 1:40 am

Post the pyramid scam details over at the MMF Hall of Humiliation's forum.

http://forums.mmfhoh.org

We (tinw) will be glad to treat them "kindly" Smile

Posted: Sun Feb 18, 2007 1:07 pm

One thing to remember.
Pyramid schemes are not illegal as such.
Provided there is a product to sell, then the scheme stays within the law.
Take for example Ann Summers. each seller is advised to find more recruits. these recruits' sales are then added to the recruiters sales, thus increasing the recruiters return.

Illegal schemes are ones where no product is actually for sale.
Example being Nethomeworkers.co.uk
The 'Product' is a bunch of freely available ebooks and advise to open sites advertising for agents and sell the idea of opening more sites.
These is no tangable product on offer and therefore illegal under UK trading law.

Posted: Mon Feb 19, 2007 10:07 am

Dirteh Sanchez wrote:

One thing to remember.
Pyramid schemes are not illegal as such.
Provided there is a product to sell, then the scheme stays within the law.
Take for example Ann Summers. each seller is advised to find more recruits. these recruits' sales are then added to the recruiters sales, thus increasing the recruiters return.

Whether a product exists for sale is irrelevant.

If the product only is bought by those who are in the scheme, or the vast majority of product is bought by those in the scheme (for example: Forced inventory purchases, you must buy this much every month even if you can not sell it) are pyramid scams, since the only way to make money is by recruiting.

The key is: Is the vast majority of the product sold to end users (not part of the scheme) - then it is not pyramid, but MLM.

Quote:

Illegal schemes are ones where no product is actually for sale.
Example being Nethomeworkers.co.uk
The 'Product' is a bunch of freely available ebooks and advise to open sites advertising for agents and sell the idea of opening more sites.
These is no tangable product on offer and therefore illegal under UK trading law.

This contradicts what you just said. "Provided there is a product to sell, then the scheme stays within the law."

And the tangibleness of the product is not relevant. As long as the vast majority of product, even intangible stuff like information, is sold to end users not part of the scheme, then it is legit.

Posted: Tue Feb 20, 2007 3:54 pm

@ Trogger : Got the info. They just got themselves a new gullible victim with lots of money to invest.

Posted: Tue Feb 20, 2007 4:27 pm

Good luck. I may pitch in too, see what happens.