DTI warns public vs. pyramiding scams
THEY are not new and many have been duped in the past, but pyramiding scams appear to continue to claim victims.
The Department of Trade and Industry (DTI) recently issued a warning again to the public against pyramiding scams conducted by certain individuals or syndicates.
DTI Provincial Director Peter Mangabat explained that pyramiding or chain distribution as defined under the Consumer Act of the Philippines is a sales mechanism whereby a person upon condition that he makes an investment is granted by the company or his representative a right to recruit for profit one or more additional persons who will also be granted the same right to recruit upon the condition that he also makes an investment.
Mangabat gave the following tips on how to detect pyramid scams: (1) Know the background of the company where you want to invest; (2) If the investment seems too good to be true, then it is possible that it is a scam; (3) Don’t be in a hurry, take time to decide when and where you want to invest your money; (4) Contact or visit the Securities and Exchange Commission (SEC) and check if the company is registered or not; and (5) Seek professional help if you are hesitant in investing your money.
He urged the public to report possible pyramiding scams at DTI-Pangasinan office at the 2nd Floor of Star Building in Arellano Street, Dagupan City or call at telephone numbers (075) 515-3183 or 529-6177. (PIA1-Pangasinan/AMM)
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