Illegal "Gifting" Pyramid Scheme

[HappyFace]

The "company" promises huge gains through an intricate online "gifting" system. This software built into the site tracks the gifting, and only allows someone to participate if they have gifted a few levels below them. To help them maintain the software, you must pay a $15 subscription fee per month. My sister came to me today, seemingly excited over the chance to make tons of money, apparently her friends aunt has already pulled in $800 in a little over one month and others in the family have had a similar result. What can I say or show her to discourage her joining? There has to be a law on the books against this type of program..

It's probably best that I dont post the link here..

 

[Legendary]

http://www.ftc.gov/bcp/conline/edcams/pyramid/

 

[Kadarin]

Tell her that (1) it's illegal, and that (2) she's a forking idiot if she joins.

 

[DaveSimmons]

There is often a friend or friend of a friend who has made a lot of money, because they're higher on the pyramd. By the time you hear this though, most of the easy victims have been found and suckered, and it's way too late to be on the winning side of the scam.

 

[NikPreviousAcct]

Originally posted by: Legendary
http://www.ftc.gov/bcp/conline/edcams/pyramid/

They can't even spell "schemes" correctly! LOL

 

[HappyFace]

Thanks for the info, but I'll need something more solid to convince her. She knows the person who made $800 personally... it's going to be very tough to convince her that this is actually a pyramid scheme. The site is written in such a way that it's very easy to be tricked into thinking they're offering a good business investment. One of her friends is graduating from business school, and even HE seems to like the idea.. Even if she does end up making money, it's not legal... and someone will end up getting shafted.

 

[sonambulo]

let her learn the hard way

 

[Actaeon]

Originally posted by: sonambulo
let her learn the hard way

Sounds like a good idea. After you've done all you could, its still up to her to make her own decisions. She'll either reap some benefits, or she'll learn her lesson.

 

[dman]

You are just jealous cuz you didn't think to sign up first.

Argh... well, there's lotsa suckers out there, she could turn a profit if her timing is right.

I say you've done your part, let her find out the hardway now.