Competition and Fair Trading Commission (CFTC) has commenced investigations against Alliance in Motion Global (AIM Global) and other associated enterprises on allegations of engaging in pyramid selling of goods and services.
The investigation follows information which CFTC received alleging that various individuals and business enterprises operating under the banner of AIM Global are engaged in the conduct of setting up and promoting pyramid selling schemes in the country.
Pyramid selling is a fraudulent scheme for the sale or lease of a product whereby one person pays a fee to participate in the scheme and receives the right to receive a fee, commission or other benefits, for simply recruiting members into the scheme.
In a statement issued Friday, CFTC Executive Director, Charlotte Malonda said the commission became interested in the matter as it appears to raise serious concerns under the Competition and Fair Trading Act (CFTA) and the Consumer Protection Act, respectively.
“It should be noted that commencement of investigation does not presuppose that any of the enterprises under investigation have violated the law. The commission will, in accordance with Section 8 (2) of the CFTA, conduct an investigation to determine whether or not the alleged conduct has violated the law,” he said.
“In particular, the purpose of the investigation is to establish the following; firstly, whether or not, AIM Global is setting up and promoting pyramid schemes in Malawi and secondly, the alleged pyramid selling of goods and services by the company violates the Competition and Fair Trading Act and Consumer Protection Act,” she added.
Malonda said the commission invites all interested stakeholders and the public to submit any information they may have on the pyramid schemes allegedly run by AIM Global or associated enterprises.
The Commission has since assured the public that it shall treat all information made available with the strictest confidentiality and will only be used for purposes of this investigation.Follow and Subscribe Nyasa TV :