Is FVP a Pyramiding Scam?
Some people are pointing to the Consumer Act of the Philippines (RA 7394) and are asking if First Vita Plus is a pyramiding scam. Let’s have a look…
Here is Article 53 of RA 7394 (Under the TITLE III. – PROTECTION AGAINST DECEPTIVE, UNFAIR AND UNCONSCIONABLE SALES ACTS OR PRACTICES, CHAPTER I: DECEPTIVE, UNFAIR AND UNCONSCIONABLE SALES ACTS OR PRACTICES):
Article 53. Chain Distribution Plans or Pyramid Sales Schemes. – Chain distribution plans or pyramid sales schemes shall not be employed in the sale of consumer products.
Article 4 defines certain terms…
k) “Chain distribution plans” or “pyramid sales schemes” means sales devices whereby a person, upon condition that he makes an investment, is granted by the manufacturer of his representative a right to recruit for profit one or more additional persons who will also be granted such right to recruit upon condition of making similar investments: Provided, That the profits of the person employing such a plan are derived primarily from the recruitment of other persons into the plan rather than from the sale of consumer products, services and credit: Provided, further, That the limitation on the number of participants does not change the nature of the plan.
So, is First Vita Plus just one big pyramiding scam?
No, it is not.
When you successfully invite someone to become a dealer, that person will pay First Vita Plus around P7,700 for P9,240 worth of products.
For that, you will earn a commission of P500. Afterall, you helped the company make a P7,700 sale.
[Yes, the P6,999 price will go up to P7,699 starting March 2010]
If you invite two people, you will earn P1,000 (P500 x 2), and since they’re a pair, you also have the chance to earn another commission of P1,500 (depending on where you place those people in your team).
Again, you made sales, so you earn a commission.
And yes, you can end up earning more than the person who invited you to become an FVP dealer, because you have the power to outsell your sponsor.
Here’s the key point, though:
There are other ways to earn via First Vita Plus.
I know a First Vita Plus dealer who isn’t actively inviting people to sign up as dealers under her. What she does instead is she directly sells First Vita Plus products to people she knows.
As an FVP dealer, she buys FVP products at a 25% discount and sells those products at regular suggested retail prices.
While she has around 5 dealers under her, those dealers are not actively recruiting. In other words, her FVP monthly income comes purely from direct/retail sales.
The people who buy the First Vita Plus natural health drink products from her have no desire to become dealers. They do not wish to invite others to become dealers.
They simply want to buy and consume the products, not as FVP dealers or discount club members. They don’t want to enjoy the 25% discount.
They just want to be regular FVP customers.
In other words, there are people who want to buy the products even if there is no compensation plan whatsoever.
One person mentioned that according to the Direct Selling Association of the Philippines (DSAP), companies using a binary compensation model are illegal.
Please show us the DSAP article that says that.
We searched the DSAP website (http://www.dsap.ph) but did not find any article that states that MLM companies using the binary method are automatically illegal.
There are a some people who have a certain view of binary plans, network marketing, or MLM companies mainly because they lack the training on how to make it work.
Fortunately, thanks to the internet, there are free tutorials you can enroll in to learn the secrets of network marketing success. I highly encourage you to try some of these online guides today.
Before First Vita Plus became what it is today, it is First Quadrant before. An MLM company that sells Marikina made products. They’ve been in a controversy of pyramiding. The binary system itself does not have any fault or is illegal. It is the twisted mind of dealers that made it look like a pyramiding scam. First Vita Plus is just around for 5 years yet last January they celebrated 8 years of their success. Why is that? It’s because, the first 3 years of the company is First Quadrant. If First Vita Plus is a pyramiding scam, it will not be featured to national television programs like Kabuhayang Swak na Swak and Rated K. Even Ms. Doyee Tactacan Tumpalan, President of First Vita Plus, was included in Go Negosyo together with Philippines’ best entrepreneurs.
Caveat Emptor….
my tanong ako ang misis ko ay ng dealer dito sa bulacan bumibili sila sa halagang 750 at may nakita ako dito sa sta maria bulacan na nagbebenta ng halaga lamang na 450 bat nagkaganon diba mali yon
[From the FVPInfo Admin] Paki-report po sa Head Office. Mas maganda kung makakuha kayo ng resibo para may prueba, at gagamitin yun ng Head Office para magsampa ng reklamo.
i posted yesterday a comment but i can not see it posted/published. . .
anyway, my inquiry is: WHY IS FVP NOT REGISTERED FOR MEMBERSHIP IN DSAP (DIRECT SELLING ASSOCIATION OF THE PHILIPPINES) UNLIKE OTHER MLM BUSINESSES SUCH AS AVON, AMWAY, DXN, ETC.?
Please respond so i can eliminate the trace of doubt in my mind regarding FVP.
Thanks!
[From FVPInfoAdmin] Perhaps FVP didn’t apply for membership in the DSAP?
I have read from an internet MLM source website and I quote
Why FVP didn’t apply for DSAP membership? Does it mean FVP is not legal? Better apply and be registered to strenthen company’s position with regards to legality issues and erase the doubts of natural skeptics like me.
We are not privy to whether FVP applied or didn’t apply. All we can clearly see is that FVP is not listed as a member of the DSAP.
Please note that there are other network marketing companies which claim they are members of the DSAP, yet are not listed in the online directory of the DSAP.
Kindly review the companies listed in the DSAP directory, and get feedback from those who have joined those companies to give you a better idea of how exactly a DSAP membership strengthens an MLM company’s position.
Is the DSAP a government body?
Let’s see what the DSAP says in their “About Us” page:
From the DSAP website we can read that they’re not calling themselves a government body, and neither are they confirming the legality of MLM companies.
We also read the following in the DSAP website:
What does it take to become a member of the DSAP?
We hope the above helps present a clearer understanding of what a DSAP membership means.
If FVP were a non-legal company, shouldn’t it have been shutdown by now? Especially given the fact that so many people talk about First Vita Plus on the internet.
It’s not exactly a low profile company, and since it is easy for people to run to Media or to blog about any fraudulent experiences with any company, how can we automatically assume that non-members of DSAP are illegal?
Jack, if FVP gets listed in the DSAP Membership Directory, will you join FVP?