THE VOLUME of pyramid scheme complaints filed in the four months to April had more than doubled the full-year total for 2020, the Department of Trade and Industry (DTI) said.
Complaints involving pyramid schemes totaled 28 as of April, as opposed to the 12 filed in 2020, the DTI said in a statement Tuesday, citing its fair trade enforcement bureau.
Pyramid schemes mainly make profits from recruiting more members rather than product sales.
“They claim that this business structure is pandemic-proof to make (it) more enticing and promising to interested investors,” the department said.
The DTI warned the public to avoid such schemes currently being promoted on social media platforms like Facebook and Instagram. Victims can report the schemes to the DTI or the Securities and Exchange Commission (SEC).
“Those companies taking advantage of consumers by disguising their pyramid sales scheme as a legitimate business opportunity…