Consumer Commission warns against ‘multiplication schemes’
The National Consumer Commission has warned potential investors in the agricultural sector to be aware of dodgy financial schemes disguised as lucrative opportunities.
This comes after the Asset Forfeiture Unit secured a R4.3-million preservation order to freeze Piggy Farm Trading's bank account.
Complaints that the company might be a multiplication scheme sparked investigations into the KZN-based entity.
Potential buyers can purchase from the farm or opt for virtual sales.
READ: AFU granted preservation order against KZN company Piggy Farm
They were promised “risk-free” and guaranteed returns of around R6,000 a year.
The NCC's Phetho Ntaba says each animal costs a little over R2 200.
"The NCC urges consumers to exercise caution when dealing with this entity. According to the Consumer Protection Act, a multiplication scheme makes promises or guarantees participants an effective annual interest rate, which are at least 20% above the repo rate per annum.
“We know that pyramid schemes, multiplication schemes, and chain letters are prohibited conduct under the Consumer Protection Act."
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