Dukasaur wrote:Symmetry wrote:saxitoxin wrote:Symmetry wrote:MeDeFe wrote:Wait, what? And you're ok with CC users being subjected to that sort of business advertising?
Symmetry wrote:So essentially you're saying that you think this is a scam, and a pyramid scheme, but you're ok with it being sold to CC users?
I'm not sure if it can be called a "scam" if it is as open as it is about being a pyramid scheme. And while I'm not at all happy with it personally, I didn't see a rule against it. It's true that we ban adbots as soon as we notice them, but regular users
are allowed to do some limited advertising.
A pyramid scheme is a scam. It's a business model that is ultimately unsustainable, and that scams people who buy into it. I'm not sure what your thinking is on this but it appears to be "buy into this illegal scheme quickly, before it collapses on those at the bottom of the pyramid".
It's illegal, now? Within three pages you went from experiencing minor annoyance to declaring an international crime was being perpetrated.
Symmetry doesn't play the games here anymore, he now does his wargaming in the forums ...
I said nothing about an international crime, but as you brought it up:
Franchise fraud (or 'franchise churning') is defined by the U.S. Federal Bureau of Investigation as a pyramid scheme. The FBI website states:
pyramid schemes :—also referred to as franchise fraud or chain referral schemes—are marketing and investment frauds in which an individual is offered a distributorship or franchise to market a particular product. The real profit is earned, not by the sale of the product, but by the sale of new distributorships. Emphasis on selling franchises rather than the product eventually leads to a point where the supply of potential investors is exhausted and the pyramid collapses.[17]
LinkWhich would indicate that the FBI considers the kind of scheme the mods have acknowledged as a pyramid scheme is serious fraud.
Pretty much the same law most places, including here in Canada.
However, the authorities generally take a "wait and see" attitude with schemes that ride the fine line between pyramid schemes and legitimate business. After all, there's nothing inherently wrong with rewarding your existing customers for bringing in new customers. It only becomes a "pyramid scheme" if, as your quote says, "eal profit is earned, not by the sale of the product, but by the sale of new distributorships." With many borderline cases, it takes months or years to see which side of the line they will fall on.[/quote]
To be fair, I wasn't the only one calling this a pyramid scheme- MeDeFe, and Blakebowling made the call too:
MeDeFe wrote:blakebowling wrote:While it does look like a scam, this thread appears to be within the Community Guidelines. However, you should feel free to request a second opinion if you disagree.
I concur with your opinion, the post is within the guidelines.
The company appears to be legit AND to work exactly like a pyramid scheme. They'll most probably provide whatever services they offer and pay out the money they tempt people with. Most of the money will be going to a very small group of people at the top of the pyramid who have to do next to nothing however. Germany has two insurance resellers that function by the same principle, you get a percentage of whatever people you have recruited earn, as well as a percentage of what people they have recruited earn and so on.
Or they'll milk as much money as they can out of this and then file for bankruptcy.
That's two mods and the FBI saying this stuff is wrong.
the world is in greater peril from those who tolerate or encourage evil than from those who actually commit it- Albert Einstein