DTI, SEC, BSP join hands to curb pyramiding schemes

The Department of Trade and Industry (DTI) is joining forces with the Securities and Exchange Commission (SEC) and the Bangko Sentral ng Pilipinas (BSP) in an effort to strengthen government’s campaign against the proliferation of pyramiding schemes.

Trade and Industry Secretary Manuel Roxas II said yesterday that he has directed Trade Undersecretary Adrian Cristobal Jr. to step up the DTI’s information campaign to protect consumers from such unscrupulous schemes.

"The DTI is also studying a proposed department administrative order on pyramiding," Roxas said.

The DTI Legal Affairs Office is checking if the provisions of the draft do not run counter to other laws being implemented by the DTI.

Roxas said the DTI is sharing the draft order with the SEC and the BSP to be able to come up with a concerted and integrated approach to eradicate pyramiding.

"Once approved and implemented, the draft order will strengthen the laws currently enforced to punish people involved in pyramiding scams," Roxas said.

At present, the DTI’s basis for enforcement is only through the Consumer Act.

Roxas also made a distinction between pyramiding and multi-level marketing.

"In a pyramiding scheme, there is really no product being sold, instead an agent is being paid a commission to recruit other agents. In multi-level marketing, there is a product being sold," he explained.