New pyramid scheme will earn you no rewards

Qld Minister for Fair Trading Margaret Keech has warned consumers of an alleged pyramid scheme.

"People are approached by email to join the scheme which promises members discount travel," Mrs Keech said. 

"To join you must pay a fee of $150.  This gives you the entry level status of 'reservation'.  By encouraging others to join, you progress up the pyramid to ultimately reach the top or 'traveller' status.  This status allegedly entitles you to travel vouchers.

"Pyramid schemes work by promising victims they will earn money or rewards through recruiting new people to join." 

"The only money coming into the scheme is from joining fees. The pyramid inevitably collapses when participants cannot recruit enough people to recover the money they originally paid to join."

Mrs Keech reminds consumers pyramid schemes are illegal.

"Under the Fair Trading Act 1989, organisers and participants face fines of up to $40,500," Mrs Keech said.

"No matter the reward offered, if you're required to recruit people rather than sell a genuine product or service, it's a pyramid scheme."

"If you are approached to join a pyramid scheme, simply say no and report it to the Office of Fair Trading."
For more information visit the Office of Fair Trading website at www.fairtrading.com.au or call 13 13 04.

www.fairtrading.qld.gov.au