This is an advantage because if you have problems and go to a Disputes Tribunal , New Zealand companies can have tribunal decisions enforced against them. Membership of the New Zealand Direct Marketing Association. Members are required to meet the association's code of ethics and follow its recommendations. For overseas companies it is advisable to stick with large and well-established firms. See Mail order sales- your legal rights for more information.
Pryamid schemes are illegal under the Fair Trading Act .
Because it is only possible to earn money by recruiting other into the scheme, those near the bottom of the pyramid always find that it is not possible to make the advertised return on their investment. There are simply not enough people in New Zealand to support pyramid schemes and, as a result, it is usually only those people who set up the scheme who are able to make any money. Pyramid selling is not the same as multi-level marketing because it doesn't involve the genuine selling of goods or services. Mulit-level marketing is legal in New Zealand. Of course, not all pyramid schemes include such an obvious clue - but you would be surprised by the number that do.