COVID-19 pandemic has reaped the world off its color and flavor, adversely affecting the economy. Despite the physical health concerns caused, the pandemic has impacted the psychological stimulus of individuals. With a staggering economy and the huge burden of economic and social decline, people’s hopes and beliefs are shattered. Many find it difficult to keep themselves and their family from starving.
Having said that, there is yet another group of people turning this situation to their advantage. Lucy Baker, a consumer defense associate at the United States Public Interest Research Group says, “I’m not shocked that scams have been on the rise. Scammers love natural disasters, especially in this environment where everyone is vulnerable.” Wonder how true that is? Online frauds and identity thefts have been on the rise for quite some time. Some caught, some still in the dark. Newyork Times stated that Americans lost $145 million to coronavirus fraud alone. Every industry witnessed these frauds, so did the network marketing industry. A huge concern indeed!
During the novel coronavirus outbreak when the whole world was looking for a way out, these imposters came out with false claims misleading people to their advantage. It had been a huge task for FTC to protect its consumers from falling prey to the MLM scams. FTC sent out articles asking the general public to beware of these scams and educate them on the topic.
FTC sent warning letters to 16 Multilevel Marketing Companies citing that their distributor’s spread false claims about their products curing or preventing Coronavirus disease. This was completely illegal as there was no scientific evidence to back their claims. Direct selling industry has previously suffered immensely due to pyramid scammers which has contributed to the shady image of the industry. To add with that, these incidents will surely create a more negative impact in the society’s mindset.
FTC, DSA, and other responsible organizations have come forward to educate the general public against falling prey to these scams. But it rests solely on the hands of the individual too. Many walk into the pitfalls out of ignorance, many others out of greed. Latter has to be dealt with personally and the former through self-education.
