Tuesday 26 February 2019

Consumer Alert: International Bread Winners

Consumer Alert: International Breadwinners

Consumers are warned that a pyramid scheme calling itself International Bread Winners is actively recruiting people in Botswana.

They describe themselves as “A network marketing business where by u join with P100 and recruit 2 people and they will be registered under u. this 2 people they also recruit their 2 people. Is a business of 2x2. Everyone who joins must bring 2 people. Then u elevate as more people come on board and move stages.”


When asked whether the scheme has any products that are sold, or whether it is based solely on recruiting other members, they are very clear.


Another responded:


When asked, the promoters of the scheme describe the earnings people can make as follows:
STAGE 1 (INVESTOR)
YOU EARN $1 PER DOWNLINER
YOU NEED 6 PEOPLE TO COMPLETE STAGE 1
TOTAL PAYOUT $6(P60)

STAGE 2 (BRONZE)
YOU EARN $3 PER DOWNLINER
YOU NEED 14 PEOPLE THAT HAVE COMPLETED STAGE 1 UNDER YOU TO JOIN YOU IN STAGE 2.
TOTAL PAYOUT $42 (P420)

STAGE 3 (SILVER)
YOU EARN $20 PER DOWNLINER
YOU NEED 14 PEOPLE WHO HAVE COMPLETED STAGE 2 UNDER YOU TO JOIN YOU IN STAGE 3
TOTAL PAYOUT $280(P2800)
GROCERY $50 (P500)

STAGE 4 (GOLD)
YOU EARN $110 PER DOWNLINER
YOU NEED 14 PEOPLE WHO HAVE COMPLETED STAGE 3 UNDER YOU TO JOIN YOU IN STAGE 4
TOTAL PAYOUT $1540(P15 400)
GROCERY $100(P1 000)

STAGE 5 (COORDINATOR)
YOU EARN $500 PER DOWNLINER
YOU NEED 14 PEOPLE WHO HAVE COMPLETED STAGE 4 UNDER YOU TO JOIN YOU IN STAGE 5
TOTAL PAYOUT $7 000(P70 000)
A CAR WORTH $17 000(P170 000) WITH 2 DIRECT DOWNLINERS
GROCERY WORTH $200(P2 000)

STAGE 6 (COUNTRY COORDINATOR)
YOU EARN $1 600 PER DOWNLINER
YOU NEED 14 PEOPLE WHO HAVE COMPLETED STAGE 5 UNDER YOU TO JOIN YOU IN STAGE 6
TOTAL PAYOUT $22 400(P224 000)
FORTUNER WORTH $50 000 (P500 000)
GROCERY WORTH $250 (P2 500)

STAGE 7 (DIPLOMATIC COORDINATOR)
YOU EARN $8 000 PER DOWNLINER
YOU NEED 14 PEOPLE WHO HAVE COMPLETED STAGE 6 UNDER YOU TO JOIN YOU IN STAGE 7
TOTAL PAYOUT $112 000(P1 120 000)
MERCEDES BENZ WORTH $92 000(P920 000)
INTERNATIONAL TRIPS
GROCERY WORTH $300 (P3 000)

STAGE 8 (EXECUTIVE COORDINATOR)
YOU EARN $40 000 PER DOWNLINER
YOU NEED 14 PEOPLE WHO HAVE COMPLETED STAGE 7 UNDER YOU TO JOIN YOU IN STAGE 8
TOTAL PAYOUT $560 000( P5 600 000)
RANGE ROVER WORTH $150 000(P1 500 000)
HOUSE WORTH $300 000( P3 000 000)
GROCERY WORTH $350(P3 500)

INFINITY STAGE
AFTER STAGE 8 YOU WILL BE RECEIVING $40 000 EACH TIME ANYONE UNDER YOU DROPS INTO INFINITY STAGE.

NOTE:
EACH AMOUNT YOU SEE HERE WHEN YOU DO NOT TRANSFER IT TO YOUR PERSONAL BANK ACCOUNT AND SELL IT TO OTHER IBW PARTNERS IT DOUBLES.
They use the following image to describe their "marketing plan":


Section 9 of the 2018 Consumer Protection Act defines a pyramid scheme as:
“where participants in the scheme receive compensation derived primarily from their respective recruitment of other persons as participants”
The key thing is that there is either no product being sold or the product is only a minor part of the business. A pyramid scheme is all about recruiting multiple levels of other people and using their joining money to pay the people above them in the pyramid. Those people recruiting others into International Bread Winners are very clear that there are no products involved, just the recruitment of other people.

The Act goes on to say that people:
“shall not directly or indirectly promote, or knowingly join, enter or participate, or cause any other person to promote, join, enter or participate in … a pyramid scheme”
The penalties for breaking this rule can be a fine of up to P100,000, imprisonment for up to 5 years, or to both.

Consumers are urged not to enter into this or any other pyramid scheme.

Background information

The company suggests that they have an office in London but the address they offer appears to be in a residential complex and the UK telephone numbers they offer are both cellphone numbers. The only other number given is a Botswana-based cellphone number. It also appears that no company called "International Breadwinners" is registered in the United Kingdom.

The domain ("interenationalbreadwinners.com") was first registered to an address in India on 7th January 2019.

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