More than 1,000 Bhutanese, including those in Australia, are involved in Global E-commerce

Dechen Dolkar 

At the beginning of this year, a female civil servant lost Nu 600,000 after falling victim to a pyramid scheme operated by Global E-commerce. Lured by promises of high returns, attractive commissions, and gifts, she was introduced to the scheme by a friend who assured her of a quick return on her investment within two to three months.

When she expressed concerns about the substantial investment, the promoters encouraged her to borrow money from others, assuring her she would receive a refund in a short time.

“I took out a loan from the bank and invested in Global E-commerce,” she said.

Promoters pressured her to deposit the money immediately, saying that initial amount which needs to deposit would increase to Nu 1 million if she delayed. They claimed the business was backed by high-profile individuals, which further convinced her.

After depositing the money, she received a Nu 30,000 incentive and was told that recruiting new downline members was mandatory.

“We underwent 21 days of online training where we were instructed to mislead potential recruits and not disclose the company’s actual business model. We were told to claim we had made millions in just one month,” she said.

When she struggled to recruit new members and requested a refund, the promoters refused, insisting she continue her recruitment efforts.

They also urged her to book a self-funded trip to Malaysia, costing around Nu 60,000.

The Competition and Consumer Affairs Authority (CCAA) announced yesterday that Global E-commerce, which may operate under different names, exhibits all the characteristics of a pyramid scheme.

Despite repeated warnings, many Bhutanese have fallen victim to what the CCAA describes as a fraudulent operation similar to the banned Q-Net scheme, declared illegal in Bhutan in 2022.

It was learnt that 1,000 Bhutanese, including those residing in Australia, are involved in Global E-commerce.

Modality of the scheme

According to the CCAA’s investigation, the scheme begins with existing members introducing participants to mentors. Over a two-week period, mentors engage recruits to explore their personal goals and aspirations. Participants are then guided through online meetings that outline the potential for earning commissions.

The recruitment process categorises potential recruits into three zones: the “hot zone” for family and close relatives, the “warm zone” for friends and acquaintances, and the “cold zone” for unfamiliar individuals. Participants in the hot zone receive discounts on initial costs.

Participants are required to deposit Nu 650,000 to Nu 850,000 as a starter fee into the introducer’s local bank account, with USD 60 transferred directly to the company’s account. In exchange, new members receive commissions of USD 200 and access to products such as travel packages, jewellery, and health products.

Members are required to sign a declaration paper.

For the first 21 days, members attend online classes on topics like communication skills and operating online schemes. After this initial training, members are expected to recruit at least five new downlines within five years to maintain their status in the programme.

Members are promised lucrative incentives, including international trips and expensive gifts, for successful recruitment.

Every Sunday, members participate in a global meeting known as the ‘Sunday System’ where participants share their success stories. However, crucial details about the scheme remain undisclosed until the initial deposit is made.

The CCAA has instructed all promoters to cease recruitment of new members immediately and to avoid participation in this scheme. Pyramid schemes are not legitimate businesses and are designed to defraud individuals, the CCAA stated.

While they may promise commissions contingent on recruiting new members, these operations inevitably collapse when recruitment opportunities diminish.

The operation of pyramid schemes is prohibited under the Consumer Protection Rules and Regulations, 2015.  So far, the CCAA has banned 14 pyramid schemes in the country.