Pyramid Scheme definition
Pyramid Scheme means: A multi layered network of subscribers to a scheme formed by subscribers enrolling one or more subscribers in order to receive any benefit, directly or indirectly, as a result of enrolment, action or performance of additional subscribers to the scheme. The subscribers enrolling further subscriber(s) occupy higher position and the enrolled subscriber(s) lower position, thus, with successive enrolments, they form multi- layered network of subscribers. Provided that the above definition of a “Pyramid Scheme” shall not apply to a multi layered network of subscribers to a scheme formed by a Direct Selling Entity, which consists of subscribers enrolling one or more subscribers in order to receive any benefit, directly or indirectly, where the benefit is as a result of sale of goods or services by subscribers and the scheme/financial arrangement complies with all of the following:
a) It has no provision that a Direct Seller will receive remuneration or incentives for the recruitment / enrolment of new participants.
b) It does not require a participant to purchase goods or services:
i. for an amount that exceeds an amount for which such goods or services can be expected to be sold or resold to consumers;
ii. for a quantity of goods or services that exceeds an amount that can be expected to be consumed by, or sold or resold to consumers;
c) It does not require a participant to pay any entry/registration fee, cost of sales demonstration equipment and materials or other fees relating to participation;
d) It provides a participant with a written contract describing the “material terms” of participation;
e) It allows or provides for a participant a reasonable cooling-off period to participate or cancel participation in the scheme and receive a refund of any consideration given to participate in the operations;
f) It allows or provides for a buy-back or repurchase policy for “currently marketable” goods or services sold to the participant at the request of the participant at reasonable terms;
g) It establishes a Grievance Redressal Mechanism for consumers, more particularly described in this Agreement at Clause 9 herein.
Explanation 1 For the purposes of this proviso the term “material terms” shall means buy-back or repurchase policy, cooling-off period, warranty and refund policy.
Pyramid Scheme means a multi layered network of subscribers to a scheme formed by subscribers enrolling one or more subscribers in order to receive any benefit, directly or indirectly, as a result of enrolment, action or performance of additional subscribers to the scheme and the subscribers enrolling further subscriber(s) occupy higher position and the enrolled subscriber(s) lower position, resulting in a multi- layered network of subscribers with successive enrolments:
Pyramid Scheme means a multi layered network of subscribers to a scheme formed by subscribers enrolling one or more subscribers in order to receive any benefit, directly or indirectly, as a result of enrolment or action or performance of additional subscribers to the scheme, in which the subscribers enrolling further subscribers occupy a higher position and the enrolled subscribers a lower position, resulting in a multi-layered network of subscribers with successive enrolments:
Examples of Pyramid Scheme in a sentence
Company does not promote a Pyramid Scheme or Money Circulation Scheme.
The DOD, represents and warrants that, inconnection withthe DOD Contract or the business resulting therefrom, it is knowledgeable about Anti -Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 and the Direct Sales and Anti -Pyramid Scheme Act 1993 applicable to the performance of the DOD Contract and will comply with all such laws.
More Definitions of Pyramid Scheme
Pyramid Scheme means: A multi layered network of subscribers to a scheme formed of subscribers enrolling one or more subscribers in order to receive any benefit, directly or indirectly as a result of enrollment action or performance of additional subscribers to the scheme. The subscribers enrolling further subscriber(S) occupy higher position and the enrolled subscriber(s) lower position, thus with successive enrolments, they form multi-layered network of subscribers.
a. It has no provision that a direct seller will receive remuneration or incentive for the recruitment/enrollment of new participants.
b. It does not require a participates to purchase goods or services.
c. For an amount that exceeds an amount for which such goods or services can be expected to be sold or resold to consumers.
d. For a quantity of goods or services that exceeds an amount that can be expected to be consumed by or sold or resold to consumers.
e. It does not require a participant to pay any entry /registration fee, cost of sales demonstration equipment and materials or other fees relating to participation.
f. It provides a participant with a written contract describing the “material terms” of participation.
g. It allows or provides for a participant a reasonable cooling off period to participate or cancel participation in the scheme and receive a refund of any consideration given to participate in the operations.
h. It allows or provides for a buy back or repurchases policy for “currently marketable” goods or services sold to the participant at the request of the participant at reasonable terms.
i. It establishes a grievance redressal mechanism for consumers, more particularly described in clause 7 herein.
Pyramid Scheme means any scheme or arrangement whatsoever which has either or both the following characteristics—
Pyramid Scheme means any scheme, arrangement, plan, operation or chain process having all or any of the features specified in the Schedule.
Pyramid Scheme means a scheme for the supply of goods, services or financial benefit where-
Pyramid Scheme means a multi layered network of subscribers to a scheme formed by subscribers enrolling one or more subscribers in order to receive any benefit, directly or indirectly, as a result of enrolment, action or performance of
Pyramid Scheme means a multi layered network of subscribers to a scheme formed by subscribers enrolling one or more subscribers in order to receive any benefit, directly or indirectly, as a result of enrolment or action or performance of additional subscribers to the scheme, in which the subscribers enrolling further subscribers occupy a higher position and the enrolled subscribers a lower position, resulting in a multi-layered network of subscribers with successive enrolments and the scheme / financial arrangement complies with all of the following:
a. It has no provision that a direct seller will receive remuneration or incentive for the recruitment/enrollment of new participants.
b. It does not require a participates to purchase goods or services.
c. For an amount that exceeds an amount for which such goods or services can be expected to be sold or resold to consumers.
d. For a quantity of goods or services that exceeds an amount that can be expected to be consumed by or sold or resold to consumers.
e. It does not require a participant to pay any entry /registration fee, cost of sales demonstration equipment and materials or other fees relating to participation.
f. It provides a participant with a written contract describing the ―material terms‖ of participation.
g. It allows or provides for a participant a reasonable cooling off period to participate or cancel participation in the scheme and receive a refund of any consideration given to participate in the operations.
h. It allows or provides for a buy back or repurchases policy for ―currently marketable‖ goods or services sold to the participant at the request of the participant at reasonable terms.
i. It establishes a grievance redressal mechanism for consumers, more particularly described in clause 7 herein. Explanation: 1 for the purpose of this proviso the terms ―material terms‖ shall means buy-back or repurchase policy, cooling off period, warranty and refund policy.
Pyramid Scheme means any [sales device or plan under] operation in which