Damien Venuto: Beware the dangerous influencer in your family
21 Jan, 2021 04:43 AM
6 minutes to read
Our trust can be used against us. Photo / Getty Images
OPINION:
This week the Commerce Commission issued a Stop Now order to a woman promoting what is likely to be a pyramid scheme. The letter sent to Shelly Cullen in respect of her promotion of the Lion s Share cryptocurrency-themed scheme only scrapes the surface of the multi-level marketing that blights social media.
A Commerce Commission spokesperson tells the Herald the watchdog is investigating a number of other schemes that similarly have the characteristics of a pyramid structure built into the offer.
Janine Grainger, a bitcoin and cryptocurrency retailer, said that while this type of scheme had always been around, cryptocurrency was providing a new vehicle for them to take place. Most of this will spread through word of mouth and network marketing, so it seems to work very strongly within particular communities, she said. The work Shelley s been doing is a really good example of that, the large number of followers she has on Facebook, people getting their friends and whānau to sign up and join in and it moves by that network effect.
Grainger said Lion Share lacked genuine value creation or sales of a product or service.
Regulators in NZ have asked a woman promoting cryptocurrency multi-level marketing to quit the scheme, which, according to the Commerce Commission, has all the traits of a pyramid scheme. The commission issued the stop order to one Shelly Cullen, the woman thought to be promoting the Lion’s share, a scheme asking people to pay hundred […]