Report 69 Business Practices Committee11. Recommendation |
The business practices of Inner Circle South Africa, Venter and his associates constitute harmful business practices. There are no grounds justifying these practices in the public interest. It is accordingly recommended that the Minister declares the harmful business practices as applied by the parties unlawful in terms of Section 12(1)(b) of the Act.
The parties are Inner Circle South Africa, Charles Frederick Venter and any participant, agent, representative, employee or any other person on their behalf (hereafter referred to as "the aforesaid persons"). It is recommended that the Minister order the aforesaid persons to stay or prevent the business practice whereby the aforesaid persons, in the course of the business of any of the aforesaid persons, directly and/or indirectly--
| a) | invites any person (hereinafter referred to as the "participating person") to enter into any arrangement with any of the aforesaid persons the terms whereof include any provision which have the effect that the participating person is obliged to make a payment of a financial consideration with the prospect of such participating person receiving payment or other money-related benefits, directly or indirectly, from his/her participation or that of the aforesaid persons in the recruitment of other persons to enter into similar arrangements with any of the aforesaid persons; |
| b) | enters into any arrangement with any person the terms whereof includes any provision which has the effect that the participating person is obliged to make a payment of a financial consideration with the prospect of such participating person receiving payment or other money-related benefits, directly or indirectly, from his/her participation or that of the aforesaid persons in the recruitment of other persons to enter into similar arrangements with any of the aforesaid persons; |
| c) | accept any financial consideration from any person in terms of any arrangement which financial consideration is used in part or in full to fulfil the obligations of either party to make payment to a third party who has entered into a similar arrangement with any of the aforesaid persons; and |
| d) | make any payment of any financial consideration or give any money-related benefit, directly or indirectly, to any person in terms of any arrangement as prohibited in terms of paragraph (b) or (c) above. |
Louise A Tager
Chairman: Business Practices Committee
11 February 1999