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How to Tell Whether GWT is Real?

There are several network marketing schemes which sell jewellery, and Global Wealth Trader, GWT, is one of them.

From the Global Wealth Trade's description of its business.

"Global Wealth Trade corp. is a USA-incorporated, and Canada-registered jewelry company with its head office in Toronto, Canada.

Global Wealth Trade Corp is a company that is dedicated to delivering designer fine jewelry to end users at near wholesale prices.

Our method of distribution helps promote small business concept to potential entrepreneurs who are looking to start their own business.

The company has already developed one-of-a-kind marketing tool called the 1-2-3 Wealth Building System.

This system allows the entrepreneurs to expand their business globally and be able to monitor their sales and profits through our state-of-the-art sales tracking software."

I don't know whether any of this is true or not, but thankfully I don't have in order to perform my initial due diligence.  Why?

Well, the regulator in this case, is the Canadian Competition Bureau, and they will review the companies marketing plan to ensure compliance with law.

The Bureau provides legally binding written opinions to businesses seeking to comply with the Competition Act.

Company officials, lawyers and others may request written opinions on whether proposed business plans and practices would raise concerns under the Act.

The Bureau's written opinions take into account jurisprudence, previous written opinions and current policies.

Written opinions are binding for as long as the facts of the situation remain substantially unchanged and the firm carries out the business plan or practice substantially as proposed.

So ask GWT for their compliance opinion, so that you can review it, or provide it to any experienced attorney or other expert for their opinion.

Here is a recent announcment that may fit this case, from the Competition Bureau about Multi Level Marketing and Jewellery schemes:

A company that supplies fashion jewellery products sought a written opinion in July 2008 on whether a proposed multi-level marketing plan would raise concerns under the Competition Act.

The Competition Bureau is obliged to ensure that operators of multi-level marketing plans, who request an opinion, are in compliance with the Act.

In this case, the Bureau required clarifications and additional information to ensure compliance.

The request for additional information remained unanswered, therefore the Bureau declined to issue an opinion to the multi-level marketing company.

There are other worries, also with this scheme, from the Competition Bureau about selling jewellery:

It is an offence to sell, offer for sale, expose for sale or have in possession for sale, import into Canada or advertise any precious metal article in a manner which is false or misleading with respect to the precious metal content of the article.

Whether you are a manufacturer, an importer or a retailer, you are responsible for ensuring that the precious metal articles you sell comply with the requirements.

There is another factor in many of these schemes, which complicates rational due diligence - the scheme has been recommended by a close friend, office worker, or family member.  To reject the scheme is to implicitly or explicitly tell someone that you respect that they are either an liar or being scammed.  That is very uncomfortable, and so in order to reduce that cognitive dissonance, you may find yourself, quite unwisely, pursuing the scheme.

But there is a third alternative here: tell the person that recommended the scheme that you simply need to see the written opinion from the Competition Bureau which confirms their compliance with the laws.  Easy, no confrontation just a demand for further facts which any legititmate company can provide.

If this help you, drop me a line or comment below.

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Full post as published by Misleading Advertising Law on July 17, 2009 (boomark / email).