Students target of pyramid schemes
AFTER receiving reports of students falling prey to networking and pyramiding scams, the Deparment of Trade and Industry (DTI) Consumer Protection and Advocacy Bureau is eyeing to conduct awareness seminars to educational institutions.
Emma Panopio, chief of surveillance and monitoring division of the Fair Trade Enforcement Bureau, said they are open for collaborations with schools and universities in educating students about illegal investment activities.
“Students are vulnerable consumers, especially to pyramiding schemes. We received reports that students are using their allowances on these schemes and these are red flags for us and also with the Securities and Exchange Commission,” she said.
The concern was raised by Venus Empuerto, dean of School of Business and Management of the University of Southern Philippines Foundation, during the public consultation on the draft administrative order on revised rules and regulations of Article 53 of the Consumer Act of the Philippines prohibiting chain distribution plans or pyramid sales schemes in the sale of consumer products.
This, after two of her students reportedly were not able to graduate because they spent the money on “membership fees.”
“In behalf of the academe and I am also one of the educators, I just want to help protect our students, especially when it comes to scams, fake investment schemes because they are also victims of these, young as they are,” she said.
Empuerto said they want the DTI to conduct a campaign or an information drive through a forum for students and faculty members to be aware of these illegal investment activities.
“They also need to know the difference between multi-level marketing and pyramiding. There might be possibilities in the near future that we could be victims,” she said.
She said there should be a dedicated help desk that students could access to guide them and determine which of these listed firms are considered to be involved in scams.
“So that we can give more information not only in the classroom but also in social media platforms for full awareness. This is also one way of helping the parents to protect the money that they really intend for the education of their students,” Empuerto said.
She said the academe is vulnerable since students could be fooled by firms that promise returns that are too good to be true.(Sunstar Philippines)