DAVAO CITY Jan . 26 (PIA)- The
City Government has warned anew quick-rick companies to comply with the rules
and policies of the city or face closure.
The city government and other
government agencies along with three other multi-level marketing firms met last
week where they clarified how they conduct their businesses.
Last January 15, the city government
enforced the closure order on multi-level marketing firm Jacama after they
misrepresented their nature of business. The business permit indicated the
company is into retail but actually its transactions are covered under the
definition of investments. It must secure a permit from the Securities and Exchange
Commission which the company hasn’t done.
City Administrator Melchor Quitain
warned the other companies with the same style of business as Jacama to follow
rules and policies. He declined to name the other MLM companies as they
are still under investigation.
Jacama involves members buying
retail packages whose prices ranges from P1,800 to P1.8 million. The
profits will be totally encashed after three months. The profit is
equivalent to an additional 30% of the money the member paid for the retail package.
The SEC in their advisory dated Jan. 16 has defined the transactions as
investments.
Citing the case of SEC vs. Santos, where the investor is
relatively uninformed and turns over the money to others, essentially depending
upon their representations and their honesty and skill in managing it. The
transaction is considered to be an investment. (PIA/RG Alama)
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