OnPassive is a pyramid scheme and illegal in Bhutan: OCP
The Office for Consumer Protection (OCP) has concluded that an online business called “OnPassive” is a pyramid scheme and illegal in the country.
The bureau investigated the trading operation after the National Bank of Bhutan (NBB) notified the Royal Monetary Authority (RMA) of its operation in the Bhutanese market last year.
It was found that 13 Bhutanese were promoters of the business and 53 Bhutanese had invested USD 105 in the business as a registration fee.
According to OCP, BNB reported that many Bhutanese were being recruited into the program and people were depositing the money using a credit card.
Officials said an individual made the most transactions amounting to USD 1,734 in the year 2020 to 2021.
An OCP report compiled last year said business promoters heard about the company through social media.
A promoter told OCP he knew about the company through Facebook in 2020 and signed up as a member after learning about the company’s compensation plan.
He recruited close friends and facilitated registration fees for other members through his personal credit card.
While some promoters told officials they joined the company after hearing about it online and the business had yet to launch, others said they received invitations to join the company. of Americans or Bhutanese there and successfully recruited under them as “downline” members.
OCP officials said cash deposit with Gofounders started in 2020 and as of July 2021, registration fees for 53 people represented a cash outflow of Nu 412,636.
Deciding that the business poses a danger to the economic interests of consumers and the depletion of convertible currency reserves if these unauthorized outbound transfers continue, OCP issued a letter to terminate its operations with immediate effect and recommend RMA to take appropriate action in accordance with applicable rules and regulations. .
OCP also notified the Commerce Department of the business operation without a business license and issued a public notification notifying that OnPassive is engaged in unfair business practices and advising people to refrain from engaging in such business practices.
He said OnPassive was in breach of the provisions of the Consumer Protection Act 2012 and the Consumer Protection Rules and Regulations (CPRR) 2015.
Officials said most members are recruited to attract investors, when the company lacks formal compensation plan and earnings disclosure documents.
“The company has not yet given a tentative launch date to its members,” an official said. “Members are incentivized to join OnPassive with the promise of earning high returns from bonuses, incentives, and achieving Founders status.”
Officials also said that members are recruited without providing prior and detailed information about the business plan, approval and legality of OnPassive’s business mode of operation in Bhutan.
OnPassive is the brainchild of an individual called Ash Mufareh with key co-founders called James Geddis, Mark Dever and Peter Surur.
It was established in 2018 and claims to have a global presence in over 216 countries and is said to provide smart business solutions (SBS) using artificial intelligence and machine learning.
It is claimed that Onpassive is headquartered in Orlando, USA and has two offices in the Indian cities of Bangalore and Hyderabad, where all the software tools are under development.
The company intends to launch more than 50-60 digital products providing internet solutions such as domain names, website builder, liquid hosting, VPNs, video marketing, email marketing , webinar platforms, HRM solutions, URL shorteners, traffic, chat, SEO, social media and much more under the same umbrella.
He claims that all the products are user-friendly, simple and easy to use. All digital products will be bundled into one monthly plan that provides full value for money paid.
Meanwhile, OCP has also investigated another company called “Crowdone” and is investigating another online company called Digital Company.