Problem

Abusive sales techniques


Experimental visualization of narrower problems
Other Names:
Marketing fraud
Marketing scams
Intrusive marketing methods
Pyramid selling
Power selling
Pyramid investment schemes
Incidence:
Austrian insurance companies began selling foreign currency insurance policies in Slovenia almost immediately following its independence, in contravention of foreign exchange laws and using notorious pyramid selling techniques. Thousand of policies were taken out by people who wanted to be insurance agents. Their carrot was commissions, not only on the policies they then sold, but also on those sold by their recruits, and the recruits of their recruits.

In 1996 it was reported that pyramid schemes are increasing in Albania and blighting the lives of many. At least 40,000 Belgians are also reported to be involved with pyramids run by Dutch and German companies, some losing entire family savings. Whilst such schemes are prohibited, police will prosecute only when a victim lodges a complaint (and so admits to breaking the law).

Claim:
One of the rules of marketing is not to expose any product to its market unless it matches consumers' needs.
Problem Type:
F: Fuzzy exceptional problems
Date of last update
12.02.2000 – 00:00 CET