Difference Between a Pyramid Scheme and Desteni I Process

It has been disputed whether Desteni I Process is a pyramid scheme and as such illegal – instead of as been continuously stated and shown by Desteni – a multi level marketing business.

So, to once and for all end the speculations and show the legal difference between a pyramid scheme and a multilevel marketing business – I present to you: EU- law concerning unfair commercial practices:

“Directive 2005/29/EC of the European Parliament and of the Council

of 11 May 2005

concerning unfair business-to-consumer commercial practices in the internal market and amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation (EC) No 2006/2004 of the European Parliament and of the Council

[…]

COMMERCIAL PRACTICES WHICH ARE IN ALL CIRCUMSTANCES CONSIDERED UNFAIR

Misleading commercial practices

[…]

14. 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.”

See – in the Desteni I Process we have a product, which is education – and in order to make an income from the Desteni I Process, you must consume and sell this product. Thus – the compensation isn’t derived solely from the introduction of other consumers – but through the LEGAL action of selling and buying a product.

A pyramid scheme on the other hand has no product of inherent value. It’s only based upon the transition of money – wherein there is all the time a need for new people to join the scheme, in order to cover up the expected profits of those already in the scheme.

For example – a banker say’s his stocks will give a return of 20% each year – investors become happy and they invest. The banker then takes the money of the investors and gives it back to them – saying that this is money from the 20% promised rise of the stocks – while it’s not.

Because there is no real product that can be sold, that has an inherent value, the banker must then look for new investors – so that he will be able to continue faking the 20 % annual return that his investors are expecting.

As can be understood, this will not last for a lifetime. At a certain point the system will collapse, as there will be to many investors wanting their money, and not enough consumers to sustain the system with more money; this will have many people loose a lot of their money, as their investments disappear into the smoke together with the fake stock – which is why it is illegal to run pyramid schemes.

So, here is the difference between Desteni I Process, as a LEGAL multi-level-marketing business, and an illegal pyramid scheme. Desteni I Process does not need more consumers in order to sustain its practice, as there is a product being sold and bought which has a worth on it’s own that sustains the business.

It’s no different than the supermarket you each day go shopping at – you give the supermarket money and you get food in return. The supermarket mustn’t increase its customer base in order to survive; as it has food that it sells which will sustain it’s business — very simple.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s