Business Practices Committee Report 75Alpha ClubR75 Notice 1146 of 1999 |
Department of Trade and Industry
Consumer Affairs (Unfair Business Practices) Act, 1988
I, Alexander Erwin, Minister of Trade and Industry, after having considered a report by the Business Practices Committee in relation to an investigation of which notice was given in General Notice 433 in Government Gazette 19838, dated 19 March 1999, which report was published in Notice 1145 in Government Gazette No. 20185 of 14 June 1999, and being of the opinion that a harmful business practice exists which is not justified in the public interest, do hereby exercise my powers in terms of section 12(1)(5) of the Consumer Affairs (Unfair Business Practices) Act, 1988 (Act No, 71 of 1988), as set out in the Schedule.
A Erwin
Minister of Trade and Industry
Schedule
In this notice, unless the context indicates otherwise -
"harmful business practice" the business practice whereby the parties, directly or indirectly:
| a) | invite or procure the attendance or attempt to invite or to procure the attendance of any person to a meeting held by or on behalf of any of the aforesaid persons at which meeting such person (hereinafter referred to as the "participating person") is invited, encouraged or in any way enticed to enter into any arrangement with any of the aforesaid persons the terms whereof include any provision which have the following effect: |
| i) | the parties to the agreement enter into a partnership |
| ii) | the participating person is obligated 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 in the recruitment of other persons to enter into similar arrangements with any of the aforesaid persons; |
| b) | enter into any arrangement with any person the terms whereof includes any provision which has the following effect: |
| i) | the parties to the agreement enter into a partnership |
| ii) | the participating person is obligated 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 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. |
"the parties" means Marketing for Success (Pty) Ltd, trading as Alpha Club, Peter Sealey, Alexandra Sullner and Hendrik Venter and/or any member, partner, agent, representative, employee or any other person on their behalf.
| 1) | The harmful business practice is hereby declared unlawful in respect of the parties. |
| 2) | The parties are hereby directed to- |
| a) | refrain from applying the harmful business practice; |
| b) | cease to have any interest in a business or type of business which applies the harmful business practice or to derive any income there from; |
| c) | refrain from at any time applying the harmful business practice; and |
| d) | refrain from at any time obtaining any interest in or deriving any income from a business or type of business applying the harmful business practice. |
| 3) | This notice shall come into operation upon the date of publication hereof. |