BANGKOK, Oct 10 (TNA) – Victims of alleged multi-level marketing (MLM) scheme have filed complaints with Thai authorities, accusing a well-known direct sales company and several celebrities of fraudulent activities.
On Thursday, lawyers from the Foundation Campaigning to Reclaim Social Justice accompanied about 20 victims to file reports with the Consumer Protection Police Division (CPPD). They claim to represent around 500 people who invested in the company’s business opportunity program.
According to the victims, they were initially drawn to the company through online advertisements and social media campaigns and were lured into investing in the company by promises of high returns and endorsements from the celebrities.
Many joined during the post-COVID economic downturn, seeking additional revenue streams.
However, after investing substantial sums of money, the victims realized they were unable to sell the company’s products and were instead encouraged to recruit more investors.
Some victims even took out loans or sold their assets to fund their investments. Many lost their life savings.
The victims allege that the company engaged in a pyramid scheme, where earnings are derived primarily from recruitment of more members rather than the sale of products or services.
Lawyer Decha Kittiwittayanan, representing another group of victims, said they were asking authorities to investigate whether this violates laws on public fraud, pyramid schemes, false advertising, and direct sales regulations.Victims report average losses of 500,000 baht ($14,000) per person.
The CPB is now investigating the matter and has called on other potential victims to come forward. -819 (TNA)
