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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 14691
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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Chris! I am hoping to find any information regarding Ipas2

Customer Question

Hi Chris! I am hoping to find any information regarding Ipas2 system and Empower network - I have lots of people telling me that it is a pyramid scheme and is illegal here in NZ and want to know FOR SURE! if it is or not!
Submitted: 2 years ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 2 years ago.
Do you have any internet links for them?
Expert:  Chris The Lawyer replied 2 years ago.
One google search said this
Expert:  Chris The Lawyer replied 2 years ago.
iPAS 2 is a decent product, but the price tag for the basic membership is quite high. It's a sale funnel system that is designed mainly to promote Empower Network. It's not technically a scam because it offers some decent tools, training, and support. But I don't think it's worth the cash. I would prefer to follow a system that doesn't advertise expensive up-sells each time I visit the webpage. It would also be nice to find a system that doesn't drain my bank account in just a couple of clicks.
Customer: replied 2 years ago.
http://www.empowernetwork.com/
Expert:  Chris The Lawyer replied 2 years ago.
All multi level marketing systems have issues because they are designed to make money from selling membership and not products. So if it looks to get good to be true...they are illegal for good reasons
Customer: replied 2 years ago.
There are definitely digital products being sold and they run events every 3 months...I understand the idea of "too good to be true" but is this illegal to take part of in NZ?
Expert:  Chris The Lawyer replied 2 years ago.
Fair Trading Act Section 24
Expert:  Chris The Lawyer replied 2 years ago.
24Pyramid selling schemes(1)No person shall promote or operate a pyramid selling scheme.(2)For the purposes of this section, the term pyramid selling scheme means—(a)a scheme—(i)that provides for the supply of goods or services or both for reward; and(ii)that, to many participants in the scheme, constitutes primarily an opportunity to buy or sell an investment opportunity, whether personally or through an agent, rather than an opportunity to buy or supply goods or services; and(iii)that is or is likely to be unfair to many of the participants in the scheme in that—(A)the financial rewards of many of those participants are dependent on the recruitment of additional participants (whether or not at successively lower levels); and(B)the number of additional participants in the scheme that must be recruited to produce reasonable financial rewards to participants in the scheme is not attainable or is not likely to be attainable by many of the participants in the scheme:(b)a scheme of the type commonly known as a chain letter scheme (whether or not it provides for the supply of goods or services or both) that is likely to be unfair to many of the participants in the scheme, in that—(i)the financial rewards of many of those participants are dependent on the recruitment of additional participants; and(ii)the number of additional participants in the scheme that must be recruited to produce reasonable financial rewards to participants in the scheme is not attainable or is not likely to be attainable by many of the participants in the scheme.
Customer: replied 2 years ago.
I do not think this is a pyramid scheme as there are products which (I feel) are products with great value. And income is not based solely on recruitment.
Expert:  Chris The Lawyer replied 2 years ago.
the last statement you mention, not solely based on recruitment. That says to me that this may be illegal as to that aspect. So you should be cautious if you want to recruit people in New Zealand. Experience tells me that schemes like this often benefit the promotors much more than participants

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