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.