Republic of the Philippines Congress of the Philippines Metro Manila Eighth Congress Republic Act No. 7394 April 13, 1992 THE CONSUMER ACT OF THE PHILIPPINES TITLE I. – GENERAL PROVISIONS Article 4. Definition of Terms. – For purposes of this Act, the term: k) Chain distribution plans or pyramid sales schemes means sales devices whereby a person, upon condition that he makes an investment, is granted by the manufacturer of his representative a right to recruit for profit one or more additional persons who will also be granted such right to recruit upon condition of making similar investments: Provided, That the profits of the person employing such a plan are derived primarily from the recruitment of other persons into the plan rather than from the sale of consumer products, services and credit: Provided, further, That the limitation on the number of participants does not change the nature of the plan.
Posted on: Thu, 03 Jul 2014 00:38:43 +0000
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