The data including but not limited to the Web pages with time/date stamp (of collection of evidence), MLM Compensation plan, Products/Services(if any/claimed), Information of the Directors/Promoters/Stakeholders/Founder members, Photographs of relevance, Policies and Procedures(if any) and Terms and conditions (Various) will be shared only with the officials of the law enforcement agencies from India.
For the same, please send an email to [email protected] with 'Ind/Investigating' as the subject.
Advance alert for the public (before the fraudsters abscond or action is taken against them for non-payments, etc.) to refrain from investing money and time in the operations listed here.
Early warning mechanisms for the law enforcement agencies of deceptive and unsustainable MLM entities before they can cause more damage.
The list contains some of the names of operations identified as Unviable business models which 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 Banning of Unregulated Deposit Schemes Act 2019.
This list is the output of an early detection and warning system by the team of Strategy india.
In this process, the team detects various MLM operations (Indian and Foreign Origin) and collects information in the first few weeks of the MLM operations starting in India.
The collected information is analysed within ten days, followed by listing unviable MLM activities on this scam alert list.
This list contains names of unviable business operations that deploy the Multilevel marketing compensation plan/s and have a multilevel marketing organization structure, which may have been initiated by the promoters (including founders, stakeholders, and the founder agents/distributors) knowingly (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 a multilevel marketing compensation plan to compensate the participants/investors/agents/distributors / independent contractors arranged in a multilevel structure.
This list is not exhaustive but contains a fraction of thousands of fraudulent MLM activities in India.
This list includes activities focused on promoting intangible (Token) products that 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 its official website, the compensation plan is sourced from other website/s /Platforms where the operators or its agents/distributors/promoters / independent contractors /participants would have displayed/posted the same.
Data used for evaluation include:
The information is shared with Investigation/Law Enforcement agencies only if requested with valid reason/s using official email ids and other accurate contact details.
Registered / Non-Registered entities/individuals (with the Registrar of companies in India) Individuals/entities which deploy a 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 subsection (2) of section 11AA of the SEBI Act)
Registered Chit fund companies
Un-viable Operations deploying the Direct/Single level compensation plans with a Direct or Single level marketing organization structure
Entities which deploy the multilevel marketing (MLM) compensation plans while promoting tangible* products even though the pay-outs committed via the compensation plan are unviable (more pay-outs 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
