Sunday, 30 March 2014

Unicity Video Created From Xtranormal

This video is a conversation with someone who does not understand the legal issues of Network Marketing. It tells how difficult it is for someone to realize what is it they miss when they insist and determine on a point that makes no common sense. Use your common sense and you will be enlighten.

Enlighten Video On Network Marketing

Unicity Network Model Under Review

A website that clarifies on pyramid scheme talks about Unicity network marketing. Check out article below -

There is a video by Unicity. A conversation on team work in Unicity network business. Treat the video in this article in an enlighten mood.

Is Unicity A Pyramid Scheme? Unicity Pyramid Scheme Evidence Reviewed-FTC Gives An Answer

Posted on October 8, 2013 by admin — No Comments ↓

Is Unicity A Pyramid Scheme or Scam? Its possible you’re looking through pages of Unicity reviews in an attempt to answer the question, is Unicity a good company to join and work for as representative? Unicity pyramid scheme allegations are going to be scrutinized as our subject matter- Is Unicity a scam or a advizable business is what will be determined.

Many entrepreneur are trying to figure out if Unicity is a pyramid scam or a genuine opportunity. Chances are you are here asking this matter. Here we discuss the two different reasons would-be entrepreneur come to the conclusion that an income opportunity like Unicity is a pyramid or scam.

Unicity Pyramid Scheme Rumors Reviewed- Reason #1 The Multi Level Stigma

What occurs so often with a lot of people is that they incorrectly believe companies like Unicity are pyramid schemes primarily because they are MLM biz opps. There really is not anything further from the truth. They think this wrongly because of the common narrow at the top, wide at the bottom structure of such companies.
But every legitimate government, military and corporate institution has also this type of pyramidal shape. Are these organizations also charged with being pyramids because of their organizational formation? Of course not. This type of thinking of course is totally ludicrous and makes no sense.

Not only are the triangular structures similar in the the business world,the government, military,church organizations, and in MLM but also the fact that each has upward mobility, ranks and achievement levels.

Unicity Compensation Plan Includes Compensation According To Your Team’s Production

An important feature that differs Multi-Level Marketing from the other segments is the fact that Multi-Level Marketing is mainly a sales model in which independent reps can to enlist other people to expand their ranks. With Unicity compensation plan you earn both on your individual productivity as well as from the production of others on your team.

For this reason its possible as a Unicity representative you can move up in positions and write your own paycheck without management politics, resumes or experience involved- just learn the right business skills and work hard.

Then What Is The True Definition Of A Pyramid Scheme? FTC Pyramid Scheme Definition

The most accurate definition of a pyramid scheme is from the Federal Trade Commission. What it amounts to from reviewing the FTC pyramid scheme definition is that there exists many great Multilevel Marketing income opportunities including companies like Unicity which is not a pyramid scheme at all by the FTC’s definition. This is because of the fact Unicity has actual products that are sold to end consumers.
According to the FTC pyramid schemes may be not so easy to recognize immediately. However, each of them all share a unique similar trait: They don’t sell a product of legitimate value to offer to an end consumer. Pyramid schemes are rarely product focused with end consumers in mind. Instead they mainly pitch the potential of large profits and recruit people who “buy into” the program. According to United States government’s FTC website some schemes may seem to sell a product, but they often simply have a product with little to no value. The primary check that exposes how genuine a particular company is to examine whether or not an actual consumer need exists for the products offered with any group of people. Then also check to make sure a refund policy is available for the customers. Legitimate companies offer a solid money back satisfaction guarantee.

Unicity Pyramid Scheme Reports Reviewed- Reason #2 So Many Fail

The next reason for people thinking Unicity pyramid scheme allegations are correct is due to the apparent low success rate experienced by themselves and people they know who venture into MLM. Lets deal with this problem then we shall reveal the way to overcome it.

To begin with the actual problem is the absence of professional marketing training and resources for the Multi Level industry. What would happen in any profession if a person just jump in it without proper formal training?

Multilevel Marketing is all about being a marketing professional. This involves selling and recruiting. Lets now review the most popular Unicity marketing training and outcome. For the most part, they are instructed to sit down and create a list to get prospecting efforts going of at least 100 folks. New reps are told to include relatives, neighbors, business associates, and on and on. However, most often, the experience most people get from the 100 name list approach is that it rarely get the results you are looking for in the long run for many people. That is if it is the only Unicity marketing method being used.

The reason being is that you get to the end of the list after a short while and you run out of prospects to offer your opportunity to. Along with this people sometimes join but don’t produce which is beyond your control -its a numbers game.

Unicity Lead Generation:Generating your own Unicity Leads-The Key To Unicity Success

To truly be successful you will have to go beyond your “people you know” list and present your opportunity to a large number of people to generate Unicity leads. Also your strategy must not be merely distributing flyers and pursuing people in shopping malls and such.

A more effective approach to marketing would be to utilize an web based lead capture and follow up system. The replicated websites provided by most MLM companies can’t provide this function. What is needed instead is a system that allows the targeting of actually interested and qualified prospects beyond your warm market online. The system would need to be able to capture the prospect’s contact details(email) and send email messages on your behalf.

The above article is extracted from:
http://isthatapyramidscheme.info/network-marketing-company-reviews/is-unicity-a-pyramid-scheme-unicity-pyramid-scheme-evidence-reviewed-ftc-gives-an-answer/

How to avoid a Pyramid Scheme

Edited by Carolyn Barratt, Leona, Teresa, Milind

A pyramid scheme is based on a simple hierarchical premise. The money from new pyramid members (the bottom of the pyramid) is used to pay returns to longer-term members (the middle and top of the pyramid). Because there is no actual investment vehicle, "returns" paid are generated exclusively from the cash infusion paid by new "investors." Pyramid schemes are illegal in most countries.

Determine if you feel the investment seems "too good to be true." If it seems to be, it probably is. Look out for things such as promises of high yield returns, quick returns, and language touting it as a "once in a lifetime opportunity," or a "chance to get in on the ground floor."

Check with the Securities and Exchange Commission (SEC) to see if it is a registered investment. When it comes to learning how to avoid a pyramid scheme, you must conduct your own due diligence. The SEC requires a majority of companies offering securities to register with their office. If the company is not registered, then that should throw up a red flag.

Contact state commissions. Another way to avoid a pyramid scheme is to check with the Secretary of State, State Corporations Commission or the State Securities Commission in which the business should be registered. The business should be registered in the state where its operation is based.

Analyze the prospectus. The SEC requires that all companies selling securities must provide the potential and existing clients with details of how and where the money will be invested. Also, many prospectuses detail the historical returns of the investment. Make sure those returns have been verified by a neutral third party such as a reputable accounting firm.

Ask about the exit strategy before you invest money. Many people become quite excited about the prospect of investing money. They hurry to "get in" so that they can lock in the big returns they feel they are missing out on. However, every good investor not only knows how to get into an investment, but how they will get out. If there are a lot of complicated parameters regarding how you can get your money out, that should raise a red flag. This means that the group clearly needs to hold onto your money for some reason. When you buy a stock or mutual fund you can usually sell the security without much fanfare or penalty.

Invest just a portion of your overall investment portfolio into any given vehicle. Even smart investors get duped. To avoid a pyramid scheme meltdown of your assets, diversify.

The above article is an extract from wikihow:

http://www.wikihow.com/Avoid-a-Pyramid-Scheme

Why Unicity is not a "Pyramid Selling Scheme"

Unicity is not a pyramid scheme. Unicity is a Multi Level Marketing networking business service. To find out the meaning. Check out this article extracted from Wikihow.

How to Distinguish Between a Pyramid Scheme and Multi Level Marketing

Pyramid Scheme Multi-Level Marketing

Edited by MMIO12, Ben Rubenstein, Jonathan E., Maluniu and 31 others

Many people automatically associate a negative connotation with buzz words like “multi-level marketing” and “downline.” These people assume that those words denote a “pyramid scheme” and that the opportunity attached to those words is a scam. However, this is simply not true. If you know what to look for and what to avoid, you will be able to detect a true “pyramid scheme” from a potential money making opportunity. In a nutshell, in a Pyramid Scheme, they will ask you to pay a fee to "start earning", while in (good) Multi Level Marketing they will offer you what you earn when you sell. We will hereunder first explain Pyramid Schemes (section 1), and then Multi Level Marketing (section 2)

Part 1 of 2: Pyramid Scheme

Understand the definition: A pyramid scheme is a non-sustainable business that involves the exchange of money, usually in the form of a sign-up fee, and usually has no product or service.

Know that pyramid schemes are illegal! The only people that are able to make money on a pyramid scheme are the people at the top of the pyramid.

The above picture proves that pyramid schemes are unsustainable. As stated above, because pyramid schemes offer no product or service, no possible way exists for the people at the bottom of the pyramid to make any money. The only way to make money in a pyramid scheme is to sign-up new members for a fee. However, as the above picture shows, this becomes impossible when the scheme reaches a certain level. The end result is that people can spend upwards of several thousand dollars to enroll in one of these scams and will end up losing everything.

Learn the common elements of a pyramid scheme. As the United State Securities and Exchange Commission states, “[t]he hallmark of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same. The fraudsters behind a pyramid scheme may go to great lengths to make the program look like a legitimate multi-level marketing program. But despite their claims to have legitimate products or services to sell, these fraudsters simply use money coming in from new recruits to pay off early stage investors.”

Look for other identifying characteristics: (1) Vague descriptions about the company from which your questions can only be answered by signing up and paying the fee; (2) No product or service being offered or a product that sells at a highly inflated price; (3) A majority or all of the possible income to be made comes from the sign-up fee from new enrollees; and (4) Repeated assurances that the company is completely legal.

Part 2 of 2: Multi-Level Marketing

Understand the difference. Multi-level marketing companies follow a similar concept to a pyramid scheme, which is a reason for most of the confusion, except that two significant differences exist.

One difference is that members at any level of a multi-level marketing model can theoretically make income through the company’s products and/or services without signing up any new members.
The second difference is that members of any level in a multi-level can earn more than the people who signed them up.
Finally, multi-level marketing companies are legal although structured almost exactly like a pyramid scheme

Understand why. You may be asking, “if all the confusion, why then do these companies initiate this business model?” The main reason for this type of model is to reduce the cost of advertising. Many new companies do not have this much capital in the beginning. Therefore, one solution is to reward the company’s members for “spreading the word.” Instead of the company spending hundreds of thousands or even millions of dollars on advertising, the company gives the members an incentive, usually in the form of money, for signing up new members to sell/use the company’s product and/or service.

Unlike a pyramid scheme, any member on any level can theoretically make money without ever having to sign-up a new member. However, once some of these proper multi-level marketing companies reach a certain population level, it becomes either impossible for any new people to sign-up or impossible for them to make big money. Therefore, the people at the bottom cannot make bonuses for sign-ups, but they will still be able to make money based on the sales of the company’s product and/or services.

Know the common elements of multi-level marketing companies. These elements assure that the member will have a fair chance to make money from the company. The elements include:

There is little or no enrollment fee.
The company completely explains itself, its products, and its services before you sign-up.
A member’s main source of income will come from selling or offering the company’s products and/or services.
A member can make money at ANY level of the model without signing up new members.

Be prepared to work for the income. As is true with any venture, your income depends on your ability to sell products or offer services. Any company that promises you money for doing nothing is not being honest with you.

This is a post written article on the difference between "pyramid selling scheme" and "mulit-level marketing". It is from the following web address:

http://www.wikihow.com/Distinguish-Between-a-Pyramid-Scheme-and-Multi-Level-Marketing

International Lemon Law Applicable To Unicity In Singapore

Unicity products being approachable and user friendly to the public. Check out this Lemon Law policy from CASE in Singapore.

International Lemon Law Application. Provide by CASE in Singapore.

Lemon Law FAQs

Background

Q1: What does the new law provide for?

A1: More Clarity on Burden of Proof and Rights Period: Under the
Lemon Law, if a defect is detected within 6 months, it is presumed
that the defect existed at the time of sale or delivery and the
lemon law provisions apply, unless the seller can prove otherwise,
or if such a presumption is incompatible with the nature of the
goods (for example, perishables and food are not expected to last
beyond their normal shelf lives.) Beyond 6 months, consumers can
still seek remedies but they will need to bear the burden of
proving that the defect existed at the time of delivery.

Additional Remedies: Under the Lemon Law provisions, the
consumer can demand the seller to repair, or replace the
defective product. If the seller fails to repair or replace the goods
within a reasonable time or without significant inconvenience to
consumer, the consumer may ask for a reduction in price or return
the product for a refund. The seller can offer an alternative
remedy from the one demanded by the consumer if the cost of
the remedy demanded is disproportionate in comparison.

Coverage of the Law

Q2: What does Lemon Law cover? Does it cover secondhand goods
and sale/discounted items?

A2: The Lemon Law covers all consumer goods, except real property
and rental/leased goods. Perishables and consumables are also
covered but the presumption that defects reported within six
months exists at the point of delivery will only apply up to the
normal shelf-life of the perishable/consumable, if the shelf-life is
less than six months.

The proposed lemon law applies to both new and secondhand
goods, and vehicles, as protection is likely to be most needed for
such goods. This is also in line with Lemon Laws in overseas jurisdictions. However, the terms may apply differently since it
would be reasonable to expect new goods to be in better
condition than secondhand goods. The courts will take into
account the age and price paid for a secondhand good when
determining reasonableness of claim. For example, someone
buying a 10-year-old car from a dealer could not reasonably
expect it to be like a brand new car. However, he can expect it to
perform in a manner that may be reasonably expected of a car of
that mileage and model. If it does not do so, the consumer can
seek remedies from the dealer.

Discounted products or sale items, with slight defects or
limitations are not excluded from the law, but any defects or
limitations of these goods should be pointed out to the consumer
before the transaction, and the retailer would not be held liable
for them.

Q3: Can secondhand goods, discounted products or “display sets”
sold on the understanding that they had slight defects be
excluded from Lemon Law, or be sold “As is” or “As seen”?

A3: The retailer cannot contract out his obligations under the law.
Even under existing laws, retailers cannot deny the consumer his
rights to remedies under the proposed law, for example by simply
displaying a notice saying, “we do not give refunds under any
circumstances” or that “an item has been sold as it is”. Any
defects or limitations of the goods should be pointed out to the
consumer before the transaction, and the retailer would not be
held liable for those defects or limitations. In this case, retailers
should be transparent at the point of sale, for example, through
appropriate labelling and disclaimers. For clarity, the retailer may
document such defects and limitations on the sales contract,
invoice or packaging.

Q4: Are online transactions covered? Can action be taken against
overseas online traders? What about gaming services and virtual
goods?

A4: Online transactions are covered under the Lemon Law, as in other
jurisdictions such as UK and EU.

The Lemon Law does not distinguish between local or foreign
online traders. Generally, Singapore law applies if the contract
stipulates it as the governing law of the contract or if the contract
is concluded in Singapore. However, it may not be possible to
enforce the judgment against the overseas trader if he has no
presence in Singapore.

The proposed Lemon Law does not cover services (i.e. game
services) as the remedies under the lemon law regime are tailored
for goods, and are generally inappropriate for services. For
example, it is impossible to return a service which has already
been rendered. This is in line with Lemon Laws in other foreign
jurisdictions.

The Lemon Law covers purchase of physical goods made over
online platforms, but not virtual goods.

Definitions

Q5: How do you define what is a Lemon or what is a defective
product?

A5: The Lemon Law provisions apply in the event of non-conformity to
contract at the time of delivery (e.g. a sale of goods contract).
Non-conformity to contract is defined under existing laws such as
the Sale of Goods Act, and includes situations such as the product
not being of satisfactory quality, not fit for the purpose it is
purchased for, or not meeting reasonable performance
expectations, taking into account description of the goods, the
price and other relevant circumstances.

“Satisfactory Quality” includes their state and condition, as well as
the following aspects:

(a) fitness for all the purposes for which goods of the kind in
question are commonly supplied;
(b) appearance and finish;
(c) freedom from minor defects;
(d) safety; and
(e) durability.

Q6: How do you define terms like 'disproportionate', 'significant
inconvenience' or ‘reasonable time’?

A6: One remedy is disproportionate in comparison to the other if the
imposed costs on the supplier is unreasonable, taking into account
:-
(a) the value which the goods would have if they conformed to the
applicable contract;
(b) the significance of the lack of conformity to the applicable
contract; and
(c) whether the other remedy could be effected without
significant inconvenience to the transferee.

As for ‘reasonable time’ and ‘significant inconvenience’, section
12C(5) provides that these issues are to be determined by the
nature of the goods and the purpose for which the goods were
acquired. It is not practicable to define these terms in greater
detail given the huge diversity of goods in the market.

The courts will thus interpret the provisions and determine
disputes.

Industry associations may adopt codes or guidance for their
members as appropriate dispute resolution practices. Industry
standards and guidelines may also indirectly influence the court’s
view.

Q7: How many times is a retailer entitled to repair the product

before he has to do a replacement? Why can’t we specify in the

law terms of defect, and conditions for remedy, especially for

clothes and big-ticket items?

A7: Given the diverse range of products, it may not be possible to

specify a reasonable number that can apply to all goods.

Nevertheless, the supplier is required to repair or replace within a

reasonable timeframe, and without causing significant

inconvenience to the buyer. Otherwise, the buyer is entitled to ask for rescission or reduction of price. The courts will interpret the

provisions and determine disputes accordingly.

Beyond the guidelines provided by the Sales of Goods Act,

stipulating the exact terms of defect and remedy is also not

practical and will make the law complicated in application. It will

also remove the flexibility for both retailer and consumer to work

out mutually acceptable arrangements. The law must be

adaptable to new goods that come on to the market. It will not be

possible to change the law every time a new product is launched.

Clarifications

Q8: What constitutes a proper replacement, can it be a used

product? After the "lemon" is replaced, is the consumer

protected for another 6 months after replacement?

A8: The replacement should conform to contract, that is, be of the

quality, make, model, and condition that is expected at the point

of sale. Wear and tear due to usage by the consumer will be

considered, and the replacement need not always be new. If the

consumer is not satisfied with the replacement, he could ask for

other remedies, such as a reduction in price, or return the product

for a refund.

The 6 months where the burden of proof is placed on the retailer

cannot be renewed with each replacement. However, the Lemon

Law provisions for remedies of repair, replacement, discount or

refund will still apply beyond this 6 months period, but the

consumer will have to prove that the replacement provided did

not conform to the contract.

Q9: Consumers are covered by the new law for defects that manifest

within six (6) month. How is this period derived?

A9: The six month period is consistent with that set in UK and EU laws.

The six month period is also not too long, such that it makes it

difficult for the seller to prove that the defect was not present at

the time of delivery.

Q10: Who is responsible for providing repairs/ replacement/

rescission/ discounts under the new Lemon Law regime? Is it the

retailer, distributor or manufacturer?

A10: Contractual liability only binds the parties to the contract. If it was

the retailer who entered into a sales contract with the consumer,

the retailer will be directly responsible for the

exchange/refund/discounts arising from non-conformity of the

goods supplied with the contract.

The retailer may seek recourse against his supplier based on his

contract with the supplier, or exercise his rights under the Sale of

Goods Act as a purchaser in respect of the supplier (in particular,

the implied terms for non-consumers under the Sale of Goods Act

are likely to apply). Under the Act, the retailer can return faulty

goods to his supplier on grounds that the goods do not conform to

contract.

If the manufacturer or supplier has separately granted a warranty

to the consumer (e.g. under a warranty card), the consumer will

continue to have rights against the manufacturer or supplier

under that separate warranty.

Q11: When will the law come into force? Are contracts entered into

before that date eligible for recourse under Lemon Law?

A11: The Lemon Law will only take effect on 1st September 2012. Sale

contracts entered into before the date cannot be covered under

the new law.

Practical issues on the ground

Q12: Are vouchers acceptable for refunds in lieu of cash?

A12: No. The partial or full refund should be in cash. The consumer may

decline to accept vouchers.

Q13: Can the consumer ask for costs or compensation for transport

and time wasted when he sends the product for repairs

repeatedly?

A13: Under the proposed law, the retailer must bear any necessary

costs incurred in providing repairs (including the cost of any

labour, materials, postage, or delivering the goods for repair). If

the retailer is unable to provide the repairs within a reasonable

time and without causing significant inconvenience to the

consumer, the consumer may demand an alternative remedy,

meanings a replacement, reduction in price or a refund.

For Lemon Law on Cars and Hire Purchase, Please check out the below continuation -

http://www.case.org.sg/downloads/central/Lemon%20Law%20FAQs.pdf

Legal Advise from Ministry of Trade and Industry in Singapore

Check out Unicity. A non-pyramid-selling and legal MLM business.

http://www.mti.gov.sg/legislation/Pages/Multi-level%20Marketing%20and%20Pyramid%20Selling.aspx

16 Oct 2007
CATEGORY Multi-level Marketing and Pyramid Selling (Prohibition) Act (Chapter 190)
TOPICS

Multi-level Marketing and Pyramid Selling

1. What is Multi-Level Marketing (MLM) and Pyramid Selling?

A Multi-Level Marketing or Pyramid Selling scheme will typically require participants to pay an upfront charge. In return, the participants are promised financial rewards for each additional participant recruited, as well as all new participants who are in turn brought in by their recruits - hence the pyramid-like structure.

As more salespersons are recruited, participants hope to recover their upfront charges and earn sizeable profits. However, such a pyramid schemes will eventually collapse when they run out of new recruits, resulting in those salespersons at the bottom of the pyramid losing all their upfront charges.

In the interest of consumer protection, the Government's regulation effort is targeted at preventing the proliferation of such high-risk schemes.

2. How do I recognise a pyramid selling scheme?

Many pyramid schemes often disguise themselves as sellers collectors' items, software, training programmes, etc, when all they are interested is to make a quick buck through recruitment. Members of the public who attend sales talks must be vigilant to such schemes. Illegitimate MLM schemes usually share the following characteristics:

When the promoter hype about how easy it is to earn money, people can get very rich in a very short time and that the way to earn money is by recruiting others to join the scheme;
The so-called product that you are supposed to sell is not something you would normally buy at its price;
Participants are required to invest money into the scheme, whether in the form of a joining fee, or buying inventory.

Remember - there is no easy money, you must believe in what you are selling and you should not put your money at unnecessary risk.

3. How are MLM activities governed in Singapore?

MLM activities in Singapore are governed by the Multi-level Marketing and Pyramid Selling(Prohibition) Act. The Ministry of Trade and Industry administers the Act.

The original Multi-Level Marketing and Pyramid Selling (Prohibition) Act was first passed in 1973. In June 2000, Parliament approved an amendment to the Act to widen the definition of pyramid selling to catch all business schemes that were multi-level in nature.

However, as not all multi-level marketing techniques are undesirable, the Government concurrently enacted the Multi-Level Marketing and Pyramid Selling (Excluded Schemes and Arrangements) Order (hereafter, referred to as the 'Exclusion Order') to exclude legitimate businesses from the Act, such as insurance companies, master franchises, and direct selling companies which fulfill certain criteria. This Exclusion Order was implemented in June 2000.

4. Why is there a need to have an Exclusion Order?

Not all multi-level marketing techniques are undesirable. There are legitimate businesses using innovative sales tactics, and should not be lumped together with pyramid schemes.

Hence, the Government enacted the Multi-Level Marketing and Pyramid Selling (Excluded Schemes and Arrangements) Order (hereafter, referred to as the 'Exclusion Order') in June 2000, to exempt legitimate businesses from the Act. The following categories of businesses were exempted:

(1) Insurance businesses that are registered, approved or licensed under the Insurance Act, the Insurance Intermediaries Act 1999 and the regulations made thereunder;

(2) Master franchise schemes and direct selling schemes which satisfy the following conditions:

The benefit received by any promoter or participant is as a result of the sale, lease, license or other distribution of a commodity and not as a result of the recruitment of additional participants;
The promoter of the scheme shall not knowingly make false or misleading representation or omission relating to the scheme or the commodity;
The promoter shall not make any representation on the benefits other than those allowed;
There should be a clearly stated policy on refund or buy-back guarantee.

After the Exclusion Order was enacted in 2000, the Government received feedback that the provisions in the Exclusion Order were not sufficiently clear. Some members of the public were also confused by claims of legitimacy by companies and often requested for the Government to clarify if particular schemes were legitimate.

In response to the feedback, the Government reviewed the Exclusion Order, and subsequently amended the Order in 2001.

5. Why is there a need to amend the Exclusion Order?

As a result of developments in the market and suggestions from the public, the Ministry of Trade and Industry, in consultation with the industry, and taking into consideration the public's comments, has come up with a revised MLM Exclusion Order.

6. What were the amendments made in 2001 to the Exclusion Order?

The Exclusion Order 2001 continued to maintain that insurance companies and master franchises would be excluded from the MLM Act.

However, it also introduced the following rules for direct selling companies:

Safeguards - A participant cannot be required to provide any benefit or acquire any commodity in order to become a participant in the scheme, other than the purchase of demonstration equipment which is not for resale, at no more than cost price and for which no commission can be given out. A legitimate multi-level marketing scheme would not impose a financial risk on salespersons. For example, salespersons should be entitled to full refunds, under reasonable commercial terms, for any inventories kept or purchased by them which are not sold to end consumers, so long as the inventories are returned within a period of 60 days.
Behavioural checks - The companies must not misrepresent the scheme as get-rich-quick opportunities, and should not use fraud, coercion, harassment, or unconscionable means to force people to join the scheme. Instead, the companies should focus their efforts on promoting the quality and features of the products. If a company wishes to show potential participants the earning potential, they must keep records of the maximum, minimum, mean, mode and median earnings of their salespeople in the past.
Sharing of commission - It is all right for a salesperson to share commissions from several layers of salespersons recruited by him. However, such commissions must be generated by sale of the product or service in question, and not through the recruitment of additional participants into the scheme.

7. When did the amended Exclusion Order come into effect?

The amendments to the Exclusion Order were published on 14 December 2001, and came into effect on 01 January 2002.

8. Where can one obtain the amended Exclusion Order?

The full text of the current Multi-Level Marketing and Pyramid Selling (Excluded Schemes and Arrangements) Order can be accessed at the MTI website.

9. What are the penalties for being in breach of the MLM Act?

During the review of the MLM Act in Year2000, the fines were raised from $30,000 to $200,000. Currently, a conviction under the Act will result in a fine of up to $200,000 or to imprisonment for a term not exceeding 5 years, or to both. The fines are for the following offences:

promoting or participating in a multi-level marketing, or pyramid selling, scheme or arrangement.
registering a business which is designed to promote multi-level marketing, or pyramid selling, scheme or arrangement.
registering a company which proposes to promote multi-level marketing, or pyramid selling, scheme or arrangement.

In addition, the Act empowers a Court that convicts a promoter or participant of a multi-level marketing or pyramid selling an additional penalty of an amount not exceeding the amount or value of any benefit which the promoter or participant has received. This additional penalty ensures that the Act serves as an effective deterrent to potential offenders.

10. What would happen to "innocent victims" who participated in pyramid schemes unknowingly, and who did not benefit in any way before the scheme closed down?

Under the Act, all persons who participate in multi-level marketing or pyramid selling would commit an offence. This is because the participants would have played an active but destructive role of attracting others into the scheme. We believe that this is the best way to deter the potential promoters of such schemes.

Hence, we would urge the public to be extra careful and to exercise due diligence when deciding whether to participate in business schemes. They should be doubly suspicious of get-rich-quick promises. If they believe empty promises and hand over their money to the promoter, chances are they will be cheated of the money. At the same time, they might be guilty of committing an offence as they are participating in an illegal scheme.

11. Is there a special license required to conduct those types of businesses listed in the Exemption Order?

Companies whose business schemes fall under the Exclusion Order are not required to obtain a special licence.

12. Can the operators and members of the public seek the Government's advice on the legality of their business schemes?

It is not proper, nor appropriate, for Government agencies to give legal advice on which scheme is legal and which is not, as this would circumscribe the Government's effectiveness in enforcing regulation against fraudulent schemes that may evolve over time.

Instead, the operators and members of the public should acquaint themselves with the relevant laws, and seek legal advice from lawyers, where necessary. Lawyers should be able to advise on specific cases, according to the context and how the actual events unfold.

13. Which agency should a member of the public report to, if they suspect that certain business schemes are actually illegal multi-level marketing or pyramid selling schemes?

The Commercial Affairs Department (CAD) investigates pyramid selling schemes. If you suspect a scheme has contravened the MLM Act, you can report to the CAD at telephone number 63250000 or lodge a report at 391 New Bridge Road, #06-701 Block D, Police Cantonment Complex, Singapore 088762.

Friday, 21 March 2014

Unicity is considered a legal business

When you join us, we pay you to use our products. In Singapore, we are considerably a legal networking business service.

Check this out footies -

http://singaporelegaladvice.com/is-multi-level-marketingmlm-legal/

Is Multi-Level Marketing(MLM) Legal?

ADMIN MAY 10, 2010 BUSINESS LAW

No, multi-level marketing (MLM) is not legal. It is governed by the Multi-level Marketing and Pyramid Selling(Prohibition) Act. But there are exceptions to the rule, embodied in the Multi-Level Marketing and Pyramid Selling (Excluded Schemes and Arrangements) Order.

Insurance companies are exempt from the Act, thus insurance companies can keep their network of insurance agents. Master franchises are also exempt. For example, if you own the Delifrance brand, you can recruit those who want to set up a Delifrance store. They can pay you to use the brand and it would not be illegal.

Direct selling is in a more delicate area. The legality of the operation would probably lie in how it is structured. It is not exactly improper to have to pay for the right to market a brand of product. It is also common to have incentives for bringing in new salespeople. But the key question is, do the participants profit from the sales of the people they recruit, or do they profit from the recruitment of the people?

The aim of the Act is to prevent unsustainable pyramid-selling. If the business derives profits mostly from the recruitment of new members, it is probably unsustainable and illegal. When a long-lost ‘friend’ contacts you to join his marketing team, keep this in mind. Contact the Commercial Affairs Department (CAD) at 6325 0000 if you suspect a business scheme of being an illegal MLM scheme.

The Ministry of Trade and Industry administers the Act. More information can be found on its website.