The National Consumer Commission (NCC) is investigating the affairs of Piggy Farm Trading, an entity that promotes and sells “virtual pigs".
This was after the Commission received complaints that Piggy Trading Farm might be a multiplication scheme.
Promoted on its website and various social media platforms, Piggy Farm Trading provides potential buyers with two options, buying from the farm and virtual buying and owning.
The second option is processed through what is called digital Metaverse Farming. The entity claims that this option is ‘risk-free’, as they farm on behalf of the participants. This includes feeding, insurance of the pigs, vaccination, and regular cleaning of pigs.
According to Piggy Farm Trading, participants can purchase between one and 50 pigs per annum at R2 200 per pig. Each pig gives its owner a minimum of R500 per month over a year as profit.
The Consumer Protection Act (CPA) describes a multiplication scheme as a scheme that promises or guarantees participants an effective annual interest rate, as calculated in the prescribed manner that is at least 20% above the repo rate.
The Commission has warned consumers to exercise caution when dealing with this entity.
“Consumers must be honest with their dealings, as the CPA prohibits any participation, recruitment, joining or promoting a multiplication scheme and other schemes.
“The NCC has noticed a spike in agricultural schemes like this one, which lure participants into joining the scheme and promise high returns. If a consumer buys livestock, they should be able to take possession of that livestock,” said the NCC’s Acting Commissioner.
The latest trends of pyramid schemes, multiplication schemes, and chain letters indicate that the owners have designed these schemes to buy into the idea of “investing” while they (consumers) are participating in prohibited conduct. Consumers are reminded of the dangers of joining, promoting and recruiting others into such schemes. These schemes always collapse and leave consumers out of pocket. – SAnews.gov.za
