Thursday, June 13, 2024

Commission takes aim at pyramid schemes

The Commerce Commission has issued a Stop Now letter to Shelly Cullen, promoter of Lion’s Share, which the Commission believes is likely a pyramid selling scheme.

Pyramid selling schemes are prohibited under the Fair Trading Act 1986.

In a statement released today, the Commission said it was investigating the Lion’s Share scheme and Ms Cullen’s promotion of it and other potential pyramid selling schemes.

The Commission’s letter requests Ms Cullen to cease association with the scheme and any other pyramid scheme; cease promotion of participants; and remove any content from social m media that promotes such schemes.

“On receiving the Stop Now letter, Ms Cullen has confirmed to the Commission that she has stopped promoting Lion’s Share,” the Commission said in a statement.

“The Commission’s investigation is ongoing.

“However, because it considers that the Lion’s Share scheme is likely a pyramid scheme, the Commission advises any individuals already involved with the Lion’s Share scheme to cease their involvement and those considering joining the Lion’s Share scheme are advised not to do so.”

It said preventing harm from pyramid schemes was a current priority for the Commission.

“The schemes require constant recruitment of new members to buy in and inevitably people lose out financially as recruitment dries up.”

“As this is an open investigation the Commission will make no further comment at this time.”

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