Originally posted by orange88:
this was on Malaysians ChinaPress newspaper a few days ago
Direct saller convinced school leavers to invest in get rich quick sceme
(KL 28th)Some multilevel marketing company salemen using dirty tricks to fool inexperienced school leavers to invest a large sum of money into get rich quick sceme!
The direct saller, 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 persue 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 didnt explain this clearly to him.
He pointed out that when he want to buy products, due to the fact that he dont understant 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 borrow money from relavites, as a result, business failed, and they have a lot of depts.
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 scociety to stay alret, so that their kids will not become 'prey' of illegal direct saller.
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 relevent to the direct sale company, therefore he hope that the direct sale company will monitor thier 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 exsisting direct sale law and pass a stricter law to monitor direct sale activities, to prevent more people fallen as victim
sad to know there are such company. hang them out to dry