DTI Reminds Consumers on 8-point Test on Pyramid Scheme

Iligan City (PIA) — Amid on alleged Chain Distribution Plan, or also known as Pyramid Scheme, enticing a number of individuals in some parts of Iligan city and nearby municipalities, the Department of Trade and Industry (DTI) has warned consumers to take extra precautionary measures and pressed them to take the 8-point test.

The warning has to be issued after a number of individuals claimed that after putting significant amount on the purportedly investment, they are hardly able to get a return of their hard-earned capital for quite some time now, said Provincial Director Ruel B. Paclipan of DTI Lanao del Norte Provincial Office.

The 8-point test to determine its legitimacy are the following: 1) Is there a product? 2) Are commissions paid on sale of products and not on registration/entry fees? 3) Is the intent to sell a product not a position? 4) Is there no direct correlation between the number of recruits and compensation? 5) If recruitment were to be stopped today, will the participants still make money? 6) Is there a reasonable product return policy? 7) Do products have fair market value? and 8) Is there a compelling reason to buy?

If the answer to all the questions is yes, then the company being evaluated is a Legitimate company.

If the answer to all the questions is no, then there is a high probability that it is a pyramid scam. (Angelo A.Devero/STIDS-DTI LDN/PIA-10 LDN)