Bill Type
Long Title
AN ACT BANNING THE CHAIN DISTRIBUTION PLANS OR PYRAMID SALES SCHEMES AMENDING FOR THE PURPOSE REPUBLIC ACT NUMBERED SEVENTY-THREE HUNDRED AND NINETY-FOUR AND FOR OTHER PURPOSES
Congress Author
Date filed
July 24, 2001
Scope
Urgent Bill
No

Legislative History

House Bill/Resolution NO. House Bill No. 1344, 12th Congress of the Republic
FULL TITLE : AN ACT BANNING THE CHAIN DISTRIBUTION PLANS OR PYRAMID SALES SCHEMES AMENDING FOR THE PURPOSE REPUBLIC ACT NUMBERED SEVENTY-THREE HUNDRED AND NINETY-FOUR AND FOR OTHER PURPOSES
ABSTRACT : Pyramiding companies are merely sales structures devised to recruit people who want to make fast money, where the value of the product or the customer base is questionable. They usually offer products with no real value and operate on the principleof making payments for recruiting others. When the inevitable saturation occurs, the people at the bottom in the pyramid run out of prospects to join the organization and lose money. Unless and until the operation of these "chain distribution plans or pyramid sales schemes" are completely banned, their activities will continue to undermine the operation of legitimate multi-level marketing companies and, by and large, affect the country's economy.
PRINCIPAL AUTHOR/S : PICHAY, PROSPERO JR. A.
DATE FILED : 2001-07-24
SIGNIFICANCE: NATIONAL
CO-AUTHORS (Journal Entries) :
1. Real (008 ) 2. Syjuco (015 )
ADMINISTRATION BILL? No
URGENT BILL? No
ACTIONS TAKEN BY THE COMMITTEE
MOTHER BILL: House Bill No. 5601, 12th Congress of the Republic
ACTIONS TAKEN BY THE COMMITTEE ON RULES
REFERRAL TO THE COMMITTEE ON TRADE AND INDUSTRY ON 2001-07-30

Abstract

Pyramiding companies are merely sales structures devised to recruit people who want to make fast money, where the value of the product or the customer base is questionable. They usually offer products with no real value and operate on the principleof making payments for recruiting others. When the inevitable saturation occurs, the people at the bottom in the pyramid run out of prospects to join the organization and lose money. Unless and until the operation of these "chain distribution plans or pyramid sales schemes" are completely banned, their activities will continue to undermine the operation of legitimate multi-level marketing companies and, by and large, affect the country's economy.

Disclaimer

Note: Legislative history and other information accessed from Congress Legis. Information as of April 20, 2022.