Piggy trading farm investigated by The NCC
The National Consumer Commission (NCC) has launched an investigation into Piggy Trading Farm, an organisation which promotes and sells “virtual pigs”. This came after the Commission received claims about Piggy Trading Farm possibly being a multiplication scheme.
Piggy Trading Farms promotes itself on its website and different social media sites, offering potential purchasers two options.
The first option is buying from the farm and virtual buying and owning. The second option is achieved through a procedure known as Digital Metaverse Farming. The organisation claims that this option is ‘risk-free’ because they farm on behalf of the participants, and it covers feeding, pig insurance, immunisation, and regular pig cleaning.
According to Piggy Trading Farm, users can purchase one to 50 pigs every year for R2200 each. Over the course of a year, each pig generates a profit of at least R500 per month. Essentially, a participant receives R6000 in profit per year.
The Consumer Protection Act (CPA) defines a multiplication scheme as one that offers or guarantees members an effective annual interest rate that is at least 20% higher than the repo rate.
The Commission advises consumers to exercise caution when dealing with this organisation.
The NCC’s Acting Commission stated that, “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.”
As stated in a media statement issued by The NCC, the most recent trends in pyramid schemes, multiplication schemes, and chain letters show that the proprietors developed these schemes to make consumers believe they are “investing” while engaging in criminal behaviour.
Consumers are reminded of the risks associated with participating, promoting, and recruiting others into such schemes. These schemes usually fail, leaving consumers out of cash.