Friday, 23 September 2011

How MULTILEVEL MARKETING companies destroy our social fabric and economy

How multilevel marketing companies are destroying social fabric & economy

For the last one decade, many fraudulent companies have been wreaking havoc on our economy by siphoning out of our country several thousands of crores of rupees every year. They not only loot our money but also out to destroy the social fabric of our society. They started multilevel marketing system in the country but actually indulging in money circulation schemes in the guise of selling products and services. We must avoid joining these fraudulent schemes and efforts should be made to remove the veil of products sales and services to identify the real mal-intention of these rogue companies.
There are umpteen numbers of companies operating on these lines all over the country and many have intruded at the local level looting the common man with inducement of get quick rich. These fraudulent companies introduce various products with the dubious claims of high quality and equally dubious claims of direct selling. There is neither high quality nor direct selling but only money circulation scheme.
People who are unto these schemes lose money ultimately and end up in strained relations with their friends and relatives. Just a quick glance around will reveal how many companies are plundering people’s money and lining their pockets. Beware of these dubious companies which offer easy and quick money, early retirement, deluxe house, luxurious life and travel abroad.
Kindly remember, there is nothing like free lunch. One has to work hard to earn it and save it judiciously. Then only anyone can become rich over the years. These fraudulent companies are becoming rich through such schemes and ninety per cent of people who joined these companies end up losing their hard-earned money.
Notwithstanding the monetary loss to our countrymen who joined these money circulation schemes, there is bigger trauma people face after strained relations with their friends, relatives and family members. Out of compulsion they might join some money circulation scheme or other. But later, they would never trust the person who forced them to join the scheme. Will they ever trust the friend who caused him monetary loss, mental pressure and physical torture in future? This is the biggest threat the country is facing today.
In order to hoodwink the provisions of Prize Chits & Money Circulation Schemes (Banning) Act, 1978, these companies took this strategy of product sales and services. The mother of all scams is Amway which started its operations way back in 1998, entering into the country with the promise of foreign direct investment. However, it has been siphoning out several hundreds of crores of rupees every year. The ex-factory price of all the products of Amway is very low and the selling price is very high. For instance, the ex-factory price of Glister toothpaste is Rs. 16 and the selling price is Rs. 120. Who is pocketing the extra amount and who is paying taxes on this amount? This is how they are cheating not only people but also the government.
There are a number of companies which indulge in such activities. It is pertinent here to name some of them. Amway, Herbalife, Tupperware, Hindustan Lever Network, Modicare, Nmart are only a few of them. Another company, GoldQuest International, which has been in existent in over 68 countries, is now closed in India thanks to the number of criminal complaints filed against the company.

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