jokach
September 14th, 2004, 07:52 PM
From all parts of the world, opinions are the same about 'quick money-making' schemes, regardless of whether its a matrix, a pyramid or just a plain old MLM. Read on.
Courtesy of:
http://www.hindu.com/lf/2004/08/29/stories/2004082900680200.htm
Need for strict regulations and proper enforcement
Money chain schemes are back with a vengeance. Many have reportedly made millions thanks to them, but an equal number may have failed in the game -- even been scalded in the process. Whether it is called multi-level marketing or business-to-business deals, they make bitter losers out of many players. Do you think the laws should have more teeth to check the culprits and save the victims? Our readers' suggestions.
Proactive law required
The phenomena, in one form or another, have been a recurring feature of social life. It is a matter of grave concern that greed and gullibility prevail upon the people, irrespective of their background, to make this recurrence a painful reality.
The case is not that there are no laws to tackle such problems, nor is it that the laws are ineffective/inadequate. Rather, like every other law, these can only be more reactive than proactive.
They can be exercised only after a crime has been committed, by which time, much damage would have been done.
Devraj Sambasivan
Alappuzha
* * *
Multi-level fraud
It is simple logic that money chain is bound to break at some point resulting in substantial loss to later investors. It is a misnomer to call this dubious business multi-level-marketing. The unconscionable transaction may be neither cheating nor fraud in the strict legal sense. But there can be hardly any doubt that the scheme is against public policy. So, effective measures should be pursued to enact and enforce stringent penal provisions.
V.K. Sathyavan Nair
Kottayam
* * *
Break the chains
With rising inflation and diminishing bank interests, many have channelised their money into such businesses. With their attractive and catchy advertisements and high returns promised by executives, many of them fell prey to it. Most of them lose huge sums and are too ashamed to reveal it in public. Such frauds can be controlled mainly by creating public awareness. Public broadcasters, publications, social and government agencies can play a great role in this. Laws should be promulgated and strictly imposed. Rigorous and stringent punishment should be meted out on violators.
Joseph George A
Thripunithura
* * *
Social problem
In Kerala, the affluence of a section of society owing o their Gulf connections has turned the less fortunate among them to seek ways to get rich quick and they fall a prey to such dubious schemes. Since the beneficiaries can be counted on fingers, the losers are too many and their modus-operandi being pestering friends and relatives to join the scheme it has become a social problem. The Government should step in to control this, if not ban it altogether.
M.K.B.Nambiar
Mahe
* * *
Plug loopholes
Money chain schemes have always fascinated the credulous.
They benefit only those at the starting point and the people at the other end are invariably the losers. Such schemes are undoubtedly veritable traps with a deceptive exterior.
We have not learnt the lesson in spite of the almost regular busts of several financial schemes which had given the impression that they were dependable schemes. What we need to remember is that hard-earned money alone provides us with ultimate happiness and satisfaction.
Ill-gotten wealth breeds many vices and finally takes its toll. It is a pity that highly educated, respected and responsible persons such as teachers, lawyers, police officers, Government staff, etc., form part of these dubious schemes. Their involvement in the scheme lends it a touch of legitimacy and credibility. High-level intervention is called for in abolishing this kind of condemnable practice in the officialdom. The existing laws have enough teeth to nab the offenders. But the will to act sternly is conspicuously missing at the top. Loopholes, if any, have to be plugged before proceeding against the culprits. At the same time, we should put our desire for fast buck in leash and learn to live with dignity, by the sweat of our brows. We should not let ourselves be blinded by the lure of lucre.
N.K. Vijayan
Kizhakkambalam
* * *
The other side
It is a pity that the Government is still unable to prevent unscrupulous fly-by-night money chains, and schemes from exploiting the common man's urge to make a fast buck out of nothing.
However, it is possible for a discerning person to screen the business opportunities available and choose the genuine ones that can really serve towards fulfilling his ambition.
The criteria that need to be met are low start-up cost, low inventory (which means no or little risk) and money refund guarantee. Also, study the company's investment in India, manufacturing facilities, range of products and services, training facilities for associates and turnover over the years.
If it is of foreign origin, see how many countries they are operating in and their track record. Network marketing is annually distributing over $100 billion worth of goods and services, on a global scale; and is legal even in countries like China.
But the Chinese Government has legislations that keep the money chains and schemes out of business, while letting the genuine direct selling/MLM companies do their business under the law. India should be no different. After all, direct selling is just another way of distributing products and services. And it gives the common man a valuable opportunity to achieve whatever he wants in his life. Whether everybody likes it or not, is a different matter altogether.
K. Ajith Kumar
Aluva
* * *
Implement law
Greed is the main reason behind the general public falling prey to schemes like money chains. The after-effects of such schemes are known to most of the victims through the media and other sources. Still the gullible public are being taken for a ride by unscrupulous operators.
The laws have enough teeth to check the culprits, but its implementation is what matters.
After the initial hue and cry, the law enforcing agencies become indifferent and the culprits start the game again. Purposeful and dedicated law enforcement should be ensured by the Government to curb such activities. The general public also should be made aware of such activities by the media.
Cherian Mathew
Kalamassery
* * *
People power
The Government should enact a law to stop the money chain system. People from other States should be allowed to propagate such money chain systems in Kerala. The people should not encourage these culprits to run their business in the State.
Apila G & Anasa G
Kochi
* * *
Change mindset
People always blame the legal system whenever something untoward happens. The trend exists not just in Kerala but in all parts of the country.
The recent nabbing of a Mumbai-based operator who cheated hundreds of investors has once again called into question the ethics of law--whether the law should have more teeth to check the culprits and save the victims? The question calls for an analysis of not just the legal system but the attitude of the people as well. What is required is to bring about a radical change in the people's attitude.
They should realise that the money chain schemes are risky ventures which bring more loss than gain. One or two lucky ones may get away with millions but others need not be equally lucky.
Further, people should understand that it is not the laws which are at fault but its implementation. Proper implementation of the laws can be brought about only if the initiative comes from the people.
Uma Nair
Thrissur
Courtesy of:
http://www.hindu.com/lf/2004/08/29/stories/2004082900680200.htm
Need for strict regulations and proper enforcement
Money chain schemes are back with a vengeance. Many have reportedly made millions thanks to them, but an equal number may have failed in the game -- even been scalded in the process. Whether it is called multi-level marketing or business-to-business deals, they make bitter losers out of many players. Do you think the laws should have more teeth to check the culprits and save the victims? Our readers' suggestions.
Proactive law required
The phenomena, in one form or another, have been a recurring feature of social life. It is a matter of grave concern that greed and gullibility prevail upon the people, irrespective of their background, to make this recurrence a painful reality.
The case is not that there are no laws to tackle such problems, nor is it that the laws are ineffective/inadequate. Rather, like every other law, these can only be more reactive than proactive.
They can be exercised only after a crime has been committed, by which time, much damage would have been done.
Devraj Sambasivan
Alappuzha
* * *
Multi-level fraud
It is simple logic that money chain is bound to break at some point resulting in substantial loss to later investors. It is a misnomer to call this dubious business multi-level-marketing. The unconscionable transaction may be neither cheating nor fraud in the strict legal sense. But there can be hardly any doubt that the scheme is against public policy. So, effective measures should be pursued to enact and enforce stringent penal provisions.
V.K. Sathyavan Nair
Kottayam
* * *
Break the chains
With rising inflation and diminishing bank interests, many have channelised their money into such businesses. With their attractive and catchy advertisements and high returns promised by executives, many of them fell prey to it. Most of them lose huge sums and are too ashamed to reveal it in public. Such frauds can be controlled mainly by creating public awareness. Public broadcasters, publications, social and government agencies can play a great role in this. Laws should be promulgated and strictly imposed. Rigorous and stringent punishment should be meted out on violators.
Joseph George A
Thripunithura
* * *
Social problem
In Kerala, the affluence of a section of society owing o their Gulf connections has turned the less fortunate among them to seek ways to get rich quick and they fall a prey to such dubious schemes. Since the beneficiaries can be counted on fingers, the losers are too many and their modus-operandi being pestering friends and relatives to join the scheme it has become a social problem. The Government should step in to control this, if not ban it altogether.
M.K.B.Nambiar
Mahe
* * *
Plug loopholes
Money chain schemes have always fascinated the credulous.
They benefit only those at the starting point and the people at the other end are invariably the losers. Such schemes are undoubtedly veritable traps with a deceptive exterior.
We have not learnt the lesson in spite of the almost regular busts of several financial schemes which had given the impression that they were dependable schemes. What we need to remember is that hard-earned money alone provides us with ultimate happiness and satisfaction.
Ill-gotten wealth breeds many vices and finally takes its toll. It is a pity that highly educated, respected and responsible persons such as teachers, lawyers, police officers, Government staff, etc., form part of these dubious schemes. Their involvement in the scheme lends it a touch of legitimacy and credibility. High-level intervention is called for in abolishing this kind of condemnable practice in the officialdom. The existing laws have enough teeth to nab the offenders. But the will to act sternly is conspicuously missing at the top. Loopholes, if any, have to be plugged before proceeding against the culprits. At the same time, we should put our desire for fast buck in leash and learn to live with dignity, by the sweat of our brows. We should not let ourselves be blinded by the lure of lucre.
N.K. Vijayan
Kizhakkambalam
* * *
The other side
It is a pity that the Government is still unable to prevent unscrupulous fly-by-night money chains, and schemes from exploiting the common man's urge to make a fast buck out of nothing.
However, it is possible for a discerning person to screen the business opportunities available and choose the genuine ones that can really serve towards fulfilling his ambition.
The criteria that need to be met are low start-up cost, low inventory (which means no or little risk) and money refund guarantee. Also, study the company's investment in India, manufacturing facilities, range of products and services, training facilities for associates and turnover over the years.
If it is of foreign origin, see how many countries they are operating in and their track record. Network marketing is annually distributing over $100 billion worth of goods and services, on a global scale; and is legal even in countries like China.
But the Chinese Government has legislations that keep the money chains and schemes out of business, while letting the genuine direct selling/MLM companies do their business under the law. India should be no different. After all, direct selling is just another way of distributing products and services. And it gives the common man a valuable opportunity to achieve whatever he wants in his life. Whether everybody likes it or not, is a different matter altogether.
K. Ajith Kumar
Aluva
* * *
Implement law
Greed is the main reason behind the general public falling prey to schemes like money chains. The after-effects of such schemes are known to most of the victims through the media and other sources. Still the gullible public are being taken for a ride by unscrupulous operators.
The laws have enough teeth to check the culprits, but its implementation is what matters.
After the initial hue and cry, the law enforcing agencies become indifferent and the culprits start the game again. Purposeful and dedicated law enforcement should be ensured by the Government to curb such activities. The general public also should be made aware of such activities by the media.
Cherian Mathew
Kalamassery
* * *
People power
The Government should enact a law to stop the money chain system. People from other States should be allowed to propagate such money chain systems in Kerala. The people should not encourage these culprits to run their business in the State.
Apila G & Anasa G
Kochi
* * *
Change mindset
People always blame the legal system whenever something untoward happens. The trend exists not just in Kerala but in all parts of the country.
The recent nabbing of a Mumbai-based operator who cheated hundreds of investors has once again called into question the ethics of law--whether the law should have more teeth to check the culprits and save the victims? The question calls for an analysis of not just the legal system but the attitude of the people as well. What is required is to bring about a radical change in the people's attitude.
They should realise that the money chain schemes are risky ventures which bring more loss than gain. One or two lucky ones may get away with millions but others need not be equally lucky.
Further, people should understand that it is not the laws which are at fault but its implementation. Proper implementation of the laws can be brought about only if the initiative comes from the people.
Uma Nair
Thrissur