Tuesday, March 23, 2010

TVI Express: illegal under Cyprus and EU law

Cyprus is in the European Union (at least the southern 2/3rds of it), and in 2007, it has passed the E.U. "Unfair Consumer Practices Directive" as its own "Law on the Unfair Commercial Practices from Businesses to Consumers of 2007" (PDF, Greek). I don't recommend clicking on the link, unless you can read Greek. However, the original Directive itself, which is like a E.U. recommended "common law", is available in English here (PDF, English). And based on this document, TVI Express is illegal! Here's a quote from the PDF itself:

pg 20, Chapter 4, "The Black List"

The commercial practices on the Black List are unfair in all circumstances and no case-by-case assessment against other provisions of the Directive is required. The list may only be modified at EU level, by revision of the Directive with the involvement of the European Parliament and the Council (representatives from Member States).
• Pyramid schemes
“Establishing, operating or promoting a pyramid promotional scheme where a consumer gives consideration for the opportunity to receive compensation that is derived primarily from the introduction of other consumers into the scheme rather than from the sale or consumption of products.”
So, let's see... TVI Express distributor = consumer, and voila! That's it! Substitute that into the sentence and you get:
Pyramid scheme: establishing, operating, or promoting a pyramid promotional scheme where a TVI Express distributor gives consideration for the opportunity to receive compensation (the $250+$250, then $10000+whatever) that is derived primarily from the introduction of other consumers into the scheme, rather than from the sale or consumption of products.
Fits perfectly! This fits exactly what the TVI Express FAQ itself states: you don't need to sell anything, you just need to recruit two people, and teach them each to recruit two more!

Now why is TVI Express NOT a scam under EU law? Can TVI Express member explain THAT?
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