Many people are still now aware of pyramid schemes and why are pyramid scheme illegal in almost every country including India, the US, the UK, Australia, and many more countries. So, In this article, I will be sharing what is pyramid schemes and are whether pyramid schemes illegal in India also complete a list of countries where pyramid schemes are illegal.
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| why are pyramid scheme illegal list of countries where pyramid schemes illegal |
In multi-level marketing not all companies are legitimate some of them run their whole business based on pyramid schemes which are illegal. Before let me tell you pyramid scheme means in MLM.
What is Pyramid Scheme in simple words?
In MLM companies you need to invest some money to become a distributor by giving them some money. But, Now, all of the MLM companies won’t ask for money from you directly.
In any company, If you pay some money then you will get some products in return and the company gets benefits from the products sold.
But in Pyramid Scheme, there is no product involved you need to pay money to become a distributor and need to add more distributer, and so on.
The difference between an MLM and a pyramid scheme is that Pyramid schemes work in a similar way but there are no products here. People need to invest money and in return, there don't get any products.
Now, you need to add at least three members to get a certain commission let's say 10% on the amount of investment. For next-level members then you will get 2% from the investment.
Pyramid schemes will waste your money and time because in pyramid schemes members need to add new members to gain commission and profit without sales of products.
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Is pyramid scheme legal in India?
No, In India as per the government's new regulation on MLM industries it MLM pyramid scheme is illegal in India.
Under the Direct Selling Guidelines, 2016 and the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, such network marketing schemes are illegal in India.
So Now, you understood why are pyramid schemes illegal.
List of countries where pyramid schemes illegal
List of countries where pyramid schemes are illegal.
- Albania
- Australia
- Austria
- Belgium
- Bahrain
- Bangladesh
- Brazil
- Canada
- China
- Colombia
- Denmark
- The Dominican Republic
- Estonia
- Finland
- France
- Germany
- Hong Kong
- Hungary
- Iceland
- India
- Indonesia
- Iran
- The Republic of Ireland
- Italy
- Japan
- Malaysia
- Maldives
- Mexico
- Nepal
- Netherlands
- New Zealand
- Norway
- Oman
- Peru
- Philippines
- Poland
- Portugal
- Romania
- Russian Federation
- Serbia
- South Africa
- Singapore
- Spain
- Sri Lanka
- Sweden
- Switzerland
- Taiwan
- Thailand
- Turkey
- Ukraine
- United Kingdom
- United States
Source: Wikipedia
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Are pyramid schemes illegal in Germany?
Yes, In Germany pyramid schemes are illegal.
Are pyramid schemes illegal in Canada and US?
Yes, as per US federal in the US and also in Canada pyramid schemes are illegal.
Is pyramid scheme legal in the Philippines?
As per Wikipedia, No pyramid scheme is illegal in the Philippines.
Above is a list of countries where pyramid schemes are illegal.
Now, time for a conclusion.
In conclusion, Why are Pyramid Scheme illegal Countries List
After reading this article you may get your answer to why are pyramid schemes illegal and also a list of countries where pyramid schemes are illegal.
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