Promotion of World Ventures in South Africa has purportedly stepped up in recent months, prompting fraud investigations by the National Consumer Commission and Specialised Commercial Crimes Unit of the South African Police Services.

Over 4100 locals in Cape Town have reportedly joined WorldVentures over the past six months, making the company roughly R22 million ($1.5 million USD) on sign-up fees alone.

“Over the past three months, the NCC has received several complaints from both the Financial Services Board and the South African Reserve Bank regarding suspected pyramid schemes,” NCC spokesperson Trevor Hattingh told Cape Town Lately.

If found guilty, all WorldVentures activities will be declared illegal in South Africa and the company will face fraud charges.

The move follows similar investigations recently in
Jamaica
 (June 2015),
Malaysia
 (April 2015) and
Norway
 (late 2014).

World Ventures’ business model
sees affiliates pay hundreds of dollars to qualify to recruit new affiliates who do the same.

The Texas-based travel network offers cheap luxury packages for members, who need to invest a large sign-up fee to join the company. Gold members pay R4200 once-off with a R1200 monthly fee, while platinum members pay R6200 once-off with a R1200 monthly fee.

WorldVentures also runs a strong recruitment drive, which is recognised as its main income generator. Members are encouraged to recruit friends and family in order to earn commissions and rewards, including financial bonuses paid in American dollars.

These distinct features strongly resemble what the Consumer Protection Act defines as a pyramid scheme, and is the main reason why the NCC has included WorldVentures in their investigation.

Last I checked commissions are paid on travel booked through the scheme, but they are peanuts compared to the recruitment commissions on offer.

Given this, I’m pretty sure we’re looking at
anothe
r declaration that World Ventures is a pyramid scheme by a government agency over the coming months.

What’s particularly interesting about the South African investigation though is that, unlike Norway Jamaica and Malaysia, this time regulators are looking to go after top promoters.

Criminal proceeding will be instituted against the initiators of a pyramid or related scheme, as this will send out a very strong message of deterrence.

However, in terms of the CPA, all participants in a pyramid scheme are committing an offence and may be subjected to legal proceedings.

If (World Ventures is) found guilty, the NCC has stressed that members will face criminal charges.

When accused of being a pyramid scheme, World Ventures’ typical response has been to declare they have no offices in the country and abandon local affiliates.

Following the criminal investigation in Jamaica though, at least one World Ventures affiliate
received a refund
:

A Corporate Area-based woman who was the first person to admit that she was scammed by someone who claimed to be an ag

🤖 Quick Answer

What investigations has World Ventures faced in South Africa?
World Ventures has been subject to fraud investigations by South Africa's National Consumer Commission and the Specialised Commercial Crimes Unit of the South African Police Services, following increased promotional activities and over 4,100 sign-ups in Cape Town within six months, generating approximately R22 million in fees.

What are the potential consequences if World Ventures is found guilty?
If convicted of fraud, World Ventures would face legal charges and all company activities would be declared illegal throughout South Africa, resulting in a complete cessation of operations within the country.

Why did authorities initiate the investigation into World Ventures?
The National Consumer Commission received multiple complaints from the Financial Services Board and South African Reserve Bank regarding suspected pyramid scheme operations, prompting formal fraud investigations into the company's business model and practices.

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