People are being targeted
Social media users are being warned not to engage with a potential pyramid scheme called the Flower/Leaf.
The Competition and Consumer Protection Commission (CCPC) said it has been contacted by people who have been invited to take part in the scheme.
What is a pyramid scheme?
The CPCC defines a pyramid scheme as a scheme that "works by offering individuals the opportunity to buy into a scheme associated with a particular product.
"This money goes to those above the individual in the pyramid."
People in the scheme are told that they can make back their original investments and qualify for a pay-out by recruiting new members, who join the pyramid below them.
In theory, the further up the pyramid a person is, the more money they get.
However, the focus on recruiting people rather than selling a product eventually leads to a point where the supply of new recruits runs out and the pyramid scheme collapses.
This means that those at the bottom of the scheme lose out on their original investment and any subsequent investments.
What is the Flower/Leaf pyramid scheme?
This particular scheme uses the image of a flower and may refer to flowers or petals being sold.
People are encouraged to pay an initial fee of €150 for a section of the flower, before recruiting other people to also invest.
This supposedly continues until the participant reaches the centre of the model - in this case, the flower - and makes a return on their investment.
Under the Consumer Protection Act 2007, it is an offence for anyone to start, operate, promote or knowingly participate in such a scheme.
Anyone approached to join any kind of pyramid promotional scheme can contact the CCPC through its helpline on 01 402 5555.
