The Competition and Consumer Protection Commission (CCPC) has warned consumers not to engage with a potential pyramid promotional scheme circulating via social media.
The potential pyramid promotional scheme, known as the 'Amazing Grace Family and Friends Scheme', is first thought to have appeared in Ireland in 2021.
The scheme claims to be a gifting community that aims to help people meet their financial goals and has four stages: Fire, Wind, Earth and Water.
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To participate in the scheme, consumers are asked to pay €1,300 to get to Stage 1.
In order to further progress through the scheme, participants must recruit two other people to join the group.
As further recruits join the scheme, earlier joiners supposedly move up through the four stages of the group to a final goal of stage 4 and receive €10,000.
Participants are invited to weekly online meetings for updates from the organisers on how the 'board' is progressing when they first join.
However, after time, people reported that they were no longer invited to the meetings and could not contact the group's organisers.
Pyramid promotional schemes generally work by offering individuals the opportunity to buy into a scheme. This money goes to those above the individual in the pyramid.
Participants in the scheme can supposedly recoup their original investments and qualify for a pay-out by recruiting new members who join the pyramid below them. In theory, the further up the pyramid a participant is, the more money they get.
In all pyramid promotional schemes, inevitably, the supply of potential investors runs out, and the pyramid promotional scheme collapses, leading to the majority of those involved losing their money.
Consumers have been reminded that pyramid schemes are illegal and those who knowingly participate in them are liable for prosecution.
In a statement, the CCPC said: "Under the Consumer Protection Act 2007, it is an offence for anyone to establish, operate, promote or knowingly participate in such a scheme. The CCPC investigates potential breaches of consumer protection law.
"The CCPC is currently investigating this scheme and is warning consumers not to engage with it.
"If a consumer is approached to join any kind of pyramid promotional scheme, please contact the CCPC immediately through our helpline on 01 402 5555."
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