Lampe Berger Tribunal

I got an email from Alex Wong, a report has been lodged against DCHL, and a hearing is on the way.

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A message from a friend of an ex-member of DCHL aka RZ

Corporation Lampe Berger representing few other
ex-members (victims):

Tribunal case to be heard at


* Tribunal of Consumer Claims,
 2 Floor, Bangunan PKNS,
 40622 SHAH ALAM, SELANGOR
* Date : 18th August 2006 (Friday)
* Time : 9:00 AM


Total Claims : Exceeded RM 25,000
              (2 cases to be heard)

Summary of refunds from DCHL
* Total Group Investment: > RM 100,O00
* Involvement: Family members & relative
* Total Refunds: way below 90% as stated in Direct
 Sales Act if refund within 6 months.
* Total Loss: SOB :(

Please feel free to join us for the hearing.
Your support are very much appreciated.


Thank you.

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It just shows, whoever dukes in DCHL, are making money out of other people's misery.

Confession of ex Lampe Berger Member

I received an email from John, who was in Lampe Berger business.
He just wants others to know how deceiving is this nature of business.

On another note, you can sense that a lot of people are aware of this lampe berger
business, and giving the cold shoulders to it.


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Hi i'm John, I joined LB for 2 months already and i decide to refund
cause
those uplines are really bugging me a lot for upgrading to count which
cost
RM30k (Now no more offer i guess, its RM36-38k if i'm not mistaken).

They told me its impossible for you to success without cloning the
RM30k
system, and i did some research and found its true that you must clone
in
order to success, but what they told me when i haven't join is totally
different, they told me RM2k is just a small amount that you can borrow
it
easily from your friend or family, they even ask you to borrow from
loan
sharks who are relatives of upline in LB so we cannot complaint them.

I never give up, i keep trying everyday to meet friends and relatives
to
talk to them about this business, but i found they all are avoiding to
meet
me and some even don't want to pick up their phones when i call them.
Being
a part of MLM will really make all your friends run away from you, you
will
start to feel lonely.

Another thing is the attitude of your uplines are totally different
compare
to before you join and after u joined. You will feel like you are
begging
them to help you to find prospect and whatever they say you must listen
or
else you're dead.

Lastly, about the refund procedure, i called to the office and ask for
the
whole procedure about refund. I'm not sure about the RM30k but RM2345
is
like this:
1. Write a letter to the company to tell them you want to resign or
fill in
an account termination form provided in the company.
2. If all the products you bought are given by the company, you will
get an
invoice (a few yellow papers) and you must photostat it and submit
together
with the termination form/letter to the counter in the company.
3. You must not bring the products while doing step 1 and step 2, they
will
contact you few days later then only you bring the items for refund.
4. Make sure the products are in good condition and not used before.
5. Around one month after you pass them the products you will recieve a
cheque with the amount of 90% from the total you paid.

If the products are bought in the company instead of given by your
upline,
then you still got some hope. Well, still looks "ok" right? At least
can
refund...but wait....

When your upline bring you to buy the products, they use their own
names to
buy it with the reason "discount". The total PV you need to become a
franchisee is 2345PV = RM2345, so if your upline buy for you, you can
get a
discount of 20% (franchisee discount), 29% (baron discount), 38% (count
discount) from RM2345. So the products can say are bought by them even
you
paid, the invoice only have their names, they transfer the PV to you
only,
and they demand cash from you cause they buy for you so they don't have
any
commisions.

Then the problem comes, there's another refund method for situation
above,
procedure as below:
1. Return the products to your upline.
2. Your upline must pay you the amount of the total products you're
refunding.
3. Your upline will take the products to the company and refund. How
they
refund i'm not sure but i guess its something similar like above.

Well, i guess your upline is not stupid enough to do that.....

Here are some advice for you guys who being asked to join LB:
1. Do not follow them to their company at Menara HLA near KLCC. If you
did,
DO NOT being impressed by them with their bullshit fake story.
2. If you joined, before anything goes worse please do not go for their
any
gatherings and get your refund as soon as possible. They say treat you
go
where also don't go, mamak/KTV/movie where also, its not enjoying at
all,
its sharing you some fake stories to make you exited and convince you
to
upgrade to RM30k.
3. Do not sign the application form when they asked you. They will say,
this
is just something to prove that you are temporary my prospect and no
one can
force you to join them. They will not let you have the chance to read
the
agreement behind the form, it wrotes behind, quite small..."No.3(i) I
agree
to pay the membership fee and other registration charges currently
enforced
by the company".
4. Never ever go to anywhere when someone who is in LB calls you, its a
trap.
5. If you insist to join, please do not let your upline do for you. The
invoice must have your name in it.
6. Do not get confuse while they telling you the marketing plan, they
will
make you confuse so that you will think what they said is all true.

How they convince you to join?
1. Someone in LB will find his upline for help if they can't convince
you
alone. He most probably will find his upline who have a nice car to
come and
find you.
2. Your friend will not say anything but agree at everything his upline
telling you. Even his upline made a mistake on the plan he also will
agree.
3. They will start talking to you normally to get close to you.
4. His upline will simply give a reason to walk away from you a while.
Then
your friend will T-Up (Talk good things) about his upline to impress
you.
5. When he finish explain the marketing plan to you, your friend will
straightaway take out an application form and probably will say "what
are
you waiting for? lets join us" something like that.

I hope everyone who wants to join LB can read my experience in LB
before
they join.

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Fights Over Lampe Berger

Yeap, we got plenty of trouble from this Lampe Berger business thanks to Steven Yeam Network.

From Unbelievable (lowyat forum)
----
Pissed ah! My best friend, or should i say ex best friend, brought me to a LB talk against my will. Not being one to tolerate betrayal, I stormed off HLA in such fury, even the uplines didnt dare to stop me. Later, we bertumbuk outside the building. Unfortunately, I didnt manage to kill him but after this incident, it is doubtful we will ever talk again.

He promised to throw money at my face when he is rich and famous kiyosaki style. Lol what a load of bullcrap!!! Makes my blood boil when i think of LB...


From LYFfan
----
Terrible. LB cause another friendship to break up.

At least yours not so bad, friends can cari new ones. My neighbour lagi teruk. Father is hard working factory owner. Work his way up no SPM type of guy. Dman nice fella. His two sons young and arrogant assholes,given overseas education as lawyers and accountants and now want to masuk LB. Fight with the father for their "inheritance" upfront to masuk LB. The father being a smart savvy biznez man obviously thought this LB is rubbish. They shout at the father outside their house saying "samelah when u die old man, we still get the $$$"

Walaumak!!! Damn drama man, whole kampung came out to listen but afterweards feel damn bad for the father. The mother wanted to call the polis on the sons and the sister wanted to take a chopper and kill her younger brothers,she was that mad. And the sons nicely drove off in their nissan and honda cars that their dad bought for them when they graduated. Aiyah, this kind of world...LB...LB....

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It might be isolated cases, but surely there's more cases like these. These cases happens all the time, but interesting enough, it points to Lampe Berger.

I can assure you, business is definitely going bad for Lampe Berger members. For last month at least. Contributing factors are due to chinese presses keeping up the bad PR.

It just takes a few bad news to take down your business. It's as simple as that.

And it takes blogs to take it down as well.

DCHL Taiwan Lampe Berger News

I got this email mentioning Lampe Berger news fraud in Taiwan. So it's no different situation compared to Malaysia.

It does not matter how many justification to back up this business. If the system can be easily manipulated, it will always bring trouble.

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Essential Oil Scam in Taiwan

The land of the fighting lawmakers, Taiwan, has recently broken a news about a disabled family (yes, this means the entire family consists of disabled members) fallen prey to the ever-growing essential oil scam in the region.

Apparently, a former Pro Baseball player known as “Little Guy” has cheated the family over NT$ 3 million, which is about Malaysian Ringgit 300,000.00. While this may not be a huge sum of money for certain people, it literally bankrupted the poor family based in Gaoshiong.

The product he sold to the family is a certain essential oil that has healing effect.

While fellow blogazine editor works hard to find someone to help us substantiate the claims of the miraculous healing factor of the horrendously expensive oil, there are people in Malaysia who seem to be happy burning money away too.

In fact, if you look closely at the screenshot shown above, you’d notice the logo of the products the family bought (we have highlighted the products in RED boxes) looks conspicuously like a famous essential oil brand that is also making waves in Malaysia, known as Lampe Berger.

source

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From http://blogazine.emuse.cc/?p=46,

You can check out the Yahoo Taiwan link as well
http://tw.news.yahoo.com/060709/39/3c294.html

Steven Yeam Deserves Jail

Got another letter from anti LB supporter, which gives an overview of the MLM industry, and how it could be turned into a great time scam.

If Koscot Interplanetary founder is now sitting behind bars, Steven Yeam should also be in jail.

And I believe this month sales has dropped tremendously due to the 45k for Count.

Lampe Berger business is certainly going sour.

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Hi,

Kudos for both of your blogs. Please feel free to edit/delete anything if anyone of you are going to publish this email.

I have several comments which is (somehow) related to SYN/DCHL and pyramid schemes. Most of the arguments are old which I just consolidate from some sources. I won't elaborate much but instead encourage you guys to read up the links and do so (if you haven't seen the links before).


The first point is the concept of this so-called 'network marketing' wasn't something new, which many of SYN/DCHL's followers believe in. Please note that SYN/DCHL's operational similiarity to Koscot Interplanetary's strategy 30 years ago. Koscot mainly sells cosmetics and to have the right to 'distribute' it, you are 'encouraged' to buy $5.4k of cosmetics. Please take a look at http://www.ftc.gov/speeches/other/dvimf16.htm. Excerpts below:

One of the Commission's first cases was In re Koscot Interplanetary, Inc.,(14) which involved a company that offered the opportunity to become a "Beauty Advisor" and sell cosmetics. The company's incentive structure really did not encourage retail sales. Instead, it encouraged people to pay $2000 for the title of "Supervisor" and purchase $5400 in Koscot cosmetics, and then to earn bonuses by recruiting others to make the same investments.(15) The Commission found that Koscot operated an illegal "entrepreneurial chain" and articulated a definition of illegal pyramiding that our agency and the federal courts continue to rely on.(16) The Commission found that pyramid schemes force participants to pay money in return for two things. First is "the right to sell a product", second is "the right to receive, in return for recruiting other participants into the program, rewards which are unrelated to sale of the product to ultimate users. (emphasis added)"(17) The Commission explained that paying bonuses for recruiting:

. . . will encourage both a company and its distributors to pursue that side of the business, to the neglect or exclusion of retail selling. The short-term result may be high recruiting profits for the company and select distributors, but the ultimate outcome will be neglect of market development, earnings misrepresentations, and insufficient sales for the insupportably large number of distributors whose recruitment the system encourages."(18)

More information like old and new plans are explained in detail in http://www.mlmlaw.com/library/cases/mlm/state/txkoscott.htm. Compared to SYN/DCHL, Koscot's structure is more complex and consists of multiple companies, including sister company 'Dare To Be Great' which charges for trainings. The stable of companies are brought down and its founder, Glenn Turner, was eventually jailed.

Here, we can see that the weakness stem from fundamental of the system instead of 'the unethical behaviour of the distributors'. Pyramid scheme, which I would explain as a system which is mathematically flawed and unsustainable, instead of the grey areas claimed by sites like http://cactaur.blogspot.com/2006/01/afterthoughts-on-mlm.html


The second point that many people may not know is, a large scale pyramid scheme may be hazardous for even a big entity like a country, as shown here: http://www.worldbank.org/html/prddr/trans/so97/albania2.htm. The article discusses failure of action by the authorities causing pyramid scheme funds balloons to 50% of Algeria's GDP before crashing the economy.


Thanks and keep up the good work.

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