FOR IMMEDIATE RELEASE
4th December 2018
Consumer Alert: CBN (“Charity Begins Nathi”)
Consumer Watchdog would like to alert consumers about a pyramid scheme calling itself CBN or “Charity Begins Nathi” currently trying to recruit victims in Botswana.
The people promoting CBN claim that for a single joining fee of P100, and then by recruiting others to join the scheme, participants can eventually earn a car worth R1.2million, a house worth R2.5 million and a range of other benefits.
CBN explain that the only activities necessary to achieve these things are “Recruitment only”, “No selling products” and “Simply recruit them to join under you, and you will be making money.”
Section 9 of the Consumer Protection Act of 2018 defines a pyramid scheme as a scheme:
“where participants in the scheme receive compensation derived primarily from their respective recruitment of other persons as participants”.CBN clearly satisfies that definition, admitting that there are no products involved and that money is made solely by recruiting other people into the scheme.
CBN is obviously a pyramid scheme. The new Consumer Protection Act states that a:
“person 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”and that the penalty for doing so will be:
“a fine not exceeding P100,000 or to imprisonment for a term not exceeding five years, or to both.”Consumer Watchdog urges people not to fall victim to this illegal pyramid scheme and to alert the authorities if they are approached by any person promoting it.
If consumers are in any doubt they should contact Consumer Watchdog for free advice. We can be reached by phone on 3904582, by email at email@example.com or by joining our Facebook group, Consumer Watchdog Botswana.