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Warning on "get rich" schemes
2000-01-26
 
The Minister for Fair Trading, Judy Spence, today urged consumers to play it safe by avoiding "get-rich-quick schemes", amid concerns about a scheme targeting rural and regional Queenslanders.

"Fair Trading offices in Cairns, Townsville, Mackay, Rockhampton, Maryborough, Maroochydore, Toowoomba and Southport have all received telephone inquiries from people who have been invited to join a get-rich-quick scheme," Ms Spence said.

Many of these inquiries are about a money game, "Cash Club", previously named by the acting Commissioner for Consumer Affairs.

Ms Spence said: "The safest way to play such games is not to play at all - to throw the promotional papers in the bin."

The Minister warned that pyramid selling is illegal in Queensland.

"If you promote or even join a pyramid scheme, you could be fined up to $40,500.

"Pyramid schemes require you to make a return on your investment by convincing other people to invest.

"As the number of people needed to form the bottom level of the pyramid increases, the structure collapses and many investors are left out of pocket. The only ones who seem to profit are the people at the top," Ms Spence said.

The acting Commissioner for Consumer Affairs warned in September 1999 about schemes such as "Cash Club". Consumers were then told there was "no legitimate prospect of a return".

Ms Spence said: "Despite this warning, suspect schemes continue to circulate throughout the State.

"From the Far North to the Gold Coast, Fair Trading offices are hearing from people who have been invited to pay a fee to join a "club". Supposedly, they will make an eight-fold return on their investment. But the aim of the "club" is to persuade others to pay a joining fee.

"Consumers have been wise to bring it to the attention of Fair Trading - instead of joining up and facing loss of their investment and a possible fine."

Contact: Fiona Kennedy 3227 8825/ 0409 061 266

 
 
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