1. To inform the countrymen to refrain from investing money and time in the operations listed here
2. To inform the law enforcement agencies of the deceptive and unsustainable entities before they can cause more damage.
3. The list contains some of the names of operations identified as Unviable business models and may be prosecuted under the Prize Chits and Money circulation (Banning) Act 1978, IPC 420, Protection of the Interest of Depositors Act (State- specific), Prevention of Money-laundering Act 2002, and The Banning of Unregulated Deposit Schemes Act 2019.
The names of the MLM operations listed here include some listed on the Ministry of Consumer Affair’s website as “self-declared to be compliant” to the guidelines published by the Department of Consumer Affairs on the 12th of September 2016.
This list is the output of an early detection and warning process by the team of Strategy India. In this process, our team detects MLM operations and collects information in the first few weeks of initiation. This information is then analysed within ten working days followed by the listing of unviable MLM activities on this scam alert list.
This list contains names of unviable business operations which deploy the Multilevel marketing compensation plan/s. These may have been initiated by the promoters (including founders, stakeholders, and the founder agents/distributors) intentionally (with complete knowledge of implications) or unintentionally (copied without understanding the viability of commitments and impact).
These operations commit to offer un-viable returns and/or display misleading information on their website/promotional material/s.
The activities listed here deploy multilevel marketing compensation plan to compensate their agents/distributors arranged in multilevel structure and (this list does not include unviable operations using the Direct and the Single level structure/compensation plan).
It is not an exhaustive list but contains a fraction of thousands of activities in India.
This list includes names of activities based on promoting intangible (Token) products which are of no use/cannot be used for the people paying for the same.
In case an operation does not display the compensation plan on their official website, the compensation plan is sourced from other website/s /Platforms where the operators or its agents/distributors/promoters would have displayed/posted the same.
The details on these companies listed here including - Snapshots of the Web pages with date and time stamps, Names of the directors, Names of the Promoters/Top distributors, Addresses, Contact numbers, Compensation plan/s, Franchisee addresses, Server details, IP addresses, Name of the Software developer and support, Approximate turnover, Area of operation, Videos of the company meetings, brochures, literatures, etc would be shared on request only with Investigation/Law Enforcement agencies if requested with valid reason/s using official email ids and other accurate contact details.
The terminology of the commonly used terms can be seen here: https://www.strategyindia.com/mlm-guidelines-1.html
Registered/Non-Registered entities/individuals (with the Registrar of companies in India)
Individuals/entities deploying Multilevel marketing compensation plan (MLM)
Collective investment schemes registered with SEBI (A Collective investment scheme is any scheme of the arrangement, which satisfies the conditions, referred to in sub- section (2) of section 11AA of the SEBI Act)
Registered Chit fund companies
Un-viable Operations deploying the Direct/Single level compensation plans with a single level or multilevel structure.
Entities which use multilevel marketing (MLM) compensation plans while promoting tangible products even though the pay-outs committed via the compensation plan are unviable (more pay-out being offered than provisioned for on the sale of products/services which are not listed as negative products on http://www.strategyindia.com/mlm-guidelines-3.html)
Strategy India is a for profit corporation and not an NGO (No donations are accepted)
The name/s from the list can only be removed if ordered by the court (the agency reserves its right to challenge the same as per the law)
Strategy India is not a government organization
The research, detection and analysis are wholly funded by Strategy India
