Maintenance Act, 1998
R 385
Business Practices Committee Report 75Alpha Club14. Recommendation |
The business practices of MFS/Alpha constituted 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 unlawful in terms of Section 12(1)(5) of the Act which practices are the subject of the investigation whereby anyone or more of the following persons, to wit:
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 (hereafter referred to as "the aforesaid persons"), in the course of the business of any of the aforesaid persons, directly or indirectly -
| a) | invites or procures the attendance or attempts 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) | enters 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. |
It is further recommended that the Minister direct the aforesaid persons in terms of section 12(1)(c) of the Act to terminate or to cease to be parties to the agreement(s)/arrangement(s) mentioned above.
LOUISE A TAGER
CHAIRMAN: BUSINESS PRACTICES COMMITTEE
22 April 1999
