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The Fair Trade Enforcement Bureau of the Department of Trade and Industry on Tuesday warned the public against chain distribution plans or pyramid sales schemes that are circulating online with push from various social media sites such as Facebook, Instagram and YouTube.
It said it received 28 complaints regarding chain distribution plans or pyramid sales schemes from consumers and investors this year, twice the complaints received in 2020.
“Victims of these fraudulent acts have the right to seek redress from the SEC [Securities and Exchange Commission] or the DTI; our doors are always open to assist and guide them in addressing their complaints,” said DTI-Consumer Protection Group Undersecretary Ruth Castelo.
Based on investigations conducted by the SEC, the modus operandi exhibited more inclination to recruiting new members than selling products and services.
