FTC opens investigation into alleged pyramid selling scheme |05 March 2021

As the Covid-19 situation takes a toll on our economy and we are doing our utmost to lessen its impact, fraudsters globally have identified it as an opportunity to make money and we have not been spared. One of many fraudulent activities in operation are Pyramid Selling Schemes (PSS), which often pose as multi-level marketing companies.

A pyramid scheme is a fraudulent system of making money based on recruiting an ever-increasing number of participants. The initial promoters recruit participants, who in turn recruit more participants for reward. The real profit is earned, not by the sale of products or services but through the ‘investment’ of new recruits. Those at the top of the pyramid benefit off the new entrants and are usually the most aggressive promoters.

The Fair Trading Commission (FTC) has in recent weeks been alerting consumers to be on the lookout for PSSs and commends consumers who have also joined these advocacy efforts.

Promoting and operating a PSS is a prohibited conduct under the Consumer Protection Act, 2010. Therefore, further to conducting a preliminary analysis, the Commission in line with its mandate is conducting an investigation into the promoters of the activities of International Currency Entrepreneur (ICE) and IM Mastery Academy. The Commission will communicate the findings of its investigation upon completion.

The Financial Services Authority (FSA) has confirmed that ICE and IM Mastery Academy do not hold a license and are not registered with them. The Commission therefore is advising consumers to take extra caution in dealings with unlicensed and unregulated businesses.

Any person(s) with information relating to the activities of ICE may contact the Commission via email at info@ft.sc, on 4289109/4325250 or through our social media platforms, Facebook and Instagram.

Press release from FTC