#RBI #MLMScam #PonziScheme
Lots of fly by night ponzi mlm schemes have duped millions of investors in India. On Thursday Reserve Bank of India notified investors against MLM companies that promise high returns and run on hefty member subscription fees.
Any break in the chain leads to the collapse of the pyramid, and the members lower down in the pyramid are the ones that are affected the most,” the Reserve Bank of India said in a circular on Thursday.
Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant’s “downline”, and can provide multiple levels of compensation.