The National Consumer Commission (NCC) says it is investigating the activities of KwaZulu-Natal company, Piggy Farm Trading, including a complaint that it may be running an alleged multiplication scheme.
The Consumer Protection Act (CPA) describes a multiplication scheme as one that promises or guarantees participants an effective annual interest rate, that at least 20% above the repo rate.
The NCC said that on the company’s website 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 and it includes feeding, insurance for the pigs, vaccination, and regular cleaning of the pigs.”
The NCC said that according to Piggy Farm Trading, participants can purchase between one and 50 pigs per annum at R2 200 per pig.
“Each pig gives its owner a minimum of R500 per month over a year as profit.”
The NCC said it was warning consumers to exercise caution when dealing with the entity.
“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 said it had noted a spike in agricultural schemes similar to this, which encourage participants to join the scheme while promising 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.”
Piggy Farm Trading said it needed more information on the investigation before it could comment. By the time of publication, it had not provided a comment. Chad Thomas, from IRS Forensic Investigations, said while he could not comment on this specific matter as he was not aware of it, in general, consumers needed to be aware of so-called “get rich quick” schemes.
Some of these schemes claim they are trading in commodities and futures, including everything from crypto currency, to the Forex market, and even livestock, he said.
He urged consumers to be vigilant and to do their homework when they are thinking of investing in investment or savings programmes.
National Stokvel Association of South Africa (Nasasa), chief executive Miziyonke Mtshali said: “It is vital that South Africans know and are able to distinguish between financial scams from stokvels and legal saving vehicles from illegal schemes.”
The Mercury