Skip to main content

Prohibition on Chain Distribution Plans or Pyramid Sales Schemes in the Sale of Consumer Products, Department of Trade and Industry Department Administrative Order No. 08, Series of 2002 (Philippines)

Chain distribution plans or pyramid sales schemes refer to when a person, upon condition that he makes an investment, is granted by the manufacturer or his representative a right to recruit, for profit, additional persons who will also be granted to the right to recruit upon making a similar investment. 

The guidelines also enumerate other instances which are considered as other forms of chain distribution plan or a pyramid sales scheme. Administrative proceedings may be instituted to file a complaint against any person who employs the prohibited schemes of chain distribution plans or pyramid sales schemes. The procedure for filing the complaint, as well as the penalties, are also specified in the guidelines.