MANILA, Philippines - The Securities and Exchange Commission (SEC) has warned the public against sales programs that require recruitment of new investors.
“Beware of ‘one line’ or ‘monoline’ marketing scheme assuring potential investor of at least P3,000 income for three heads or P30,000 for maximum cycle,†the corporate regulator said.
SEC said it received information on questionable business activities of a vitamin supplement company.
Under the scheme, an investor is required to buy one Vitamin C product kit for a discounted price of P1,000 and recruit two directs or take three kits at a cost of P3,000.
“Remember, it is a questionable deal if the money you will earn is dependent on the number of the participants you can recruit and not on real products and real sales,†SEC said.
Investors should also verify or investigate the legal existence of the firm and its authority to engage in a business activity, the quality of the products, and the credibility of the company’s management, SEC added.
Last month, the corporate watchdog advised the public not to fall for online investment scams, pyramiding schemes and unauthorized pre-need firms that are mostly preying on investors in provinces.
The SEC is stepping up its efforts to warn the public against fraudulent business practices.
Late last year, Pagadian-based Aman Futures Group Philippines Inc. was exposed as a P12-billion investment scam, defrauding thousands of politicians, professionals, businessmen and employees.