The Commerce Commission is warning that promoters have made false claims that it has endorsed or approved a United States get rich quick scheme which has since spread to New Zealand.
Commission Chairman Dr Alan Bollard said the Commission has not approved or endorsed the scheme in any way.
The scheme is known under many names, including Headstart Enterprises, Richard L Green and Edward L Green.
"We never approve or endorse any business schemes, nor do we say they are legal or OK in any other way," Dr Bollard said.
"If this opportunity is so good, why are people promoting it by making false claims that, 'I even checked with the Commerce Commission to verify this programme is legal. It definitely is'."
Dr Bollard warned that making a false or misleading claim about an endorsement is illegal. People making such claims are leaving themselves open to criminal prosecution.
"Our advice, if you receive a letter claiming a scheme is approved by the Commission, is don't believe it, screw up the letter and throw it away."
A line sometimes used by promoters is, 'it complies fully with United States (or another country's) law'.
"The correct answer to that is, 'so what'," Dr Bollard said. "It is New Zealand law it must comply with.
"Promoters also often claim people will not have to do any hard work to make a lot of money. Unfortunately, if it looks too good to be true, it probably is. Just throw away the letter and don't waste your time and money."
