The Direct Selling Association of South Africa (DSA), a lobby group that represents the interests of companies such as Amway, Herbalife and Avon, has called for harsher punishments for the masterminds behind Ponzi schemes, saying the investment scams are hurting the credibility of legitimate businesses. Ponzi schemes, which are illegal, are a type of investment scam in which early investors make money from the investments of later investors. "The most significant way in which Ponzi schemes affect our industry is diminished credibility of legitimate direct selling businesses because more often than not, they tend to fashion themselves as direct selling businesses," said the DSA's chairperson, Rajesh Parshotam.

Source: News 24 January 28, 2021 04:07 UTC