The National Consumer Commission (NCC) is investigating the affairs of Piggy Farm Trading, an entity that promotes and sells “virtual pigs”. This was after the Commission received complaints from farmers in all provinces that Piggy Trading Farm might be a multiplication scheme.
Promoted on its website and various social media platforms, Piggy Farm Trading provides potential buyers with two options: buying from the farm and virtual buying and owning. The second option is processed through what is called digital Metaverse Farming. The entity claims that this option is ‘risk-free’ as they farm on behalf of the participants; includes feeding, insurance of the pigs, vaccination, and regular cleaning of pigs.
According to Piggy Farm Trading, participants can purchase between one and 50 pigs per annum at R2200 per pig. Each pig gives its owner a minimum of R500 per month over a year, as profit. Essentially, a participant pockets R6000 of profit, per annum.
The Consumer Protection Act (CPA) describes a multiplication scheme as a scheme that promises or guarantees participants an effective annual interest rate, as calculated in the prescribed manner that is at least 20% above the repo rate.
The Commission warns consumers to exercise caution when dealing with this entity. The NCC’s Acting Commission said “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.
The latest trends of pyramid schemes, multiplication schemes, and chain letters indicate that the owners have designed these schemes to buy into the idea of “investing” while they (consumers) are participating in prohibited conduct. Consumers are reminded of the dangers of joining, promoting, and recruiting others into such schemes. These schemes always collapse and leave consumers out of pocket.