‘WhatsApp gifting’ is illegal, warns Consumer Commission
The National Consumer Commission has warned South Africans that the latest iteration of a financial scheme, popularly known as WhatsApp gifting, is illegal.
Speaking in Tshwane on Tuesday, the commission’s acting company secretary Joseph Selolo compared WhatsApp gifting to a pyramid scheme.
“What we know about WhatsApp gifting is that a person joins and is assigned a lower level and that person must then recruit and their money is used to pay the existing people who are higher up in the levels.
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“And then they must recruit and, once they recruit, they move a level up. That is what is called a chain ladder in the Consumer Protection Act, it is prohibited conduct. This WhatsApp gifting is an illegal activity.“
However, Selolo says the commission has not received any formal complaints.
“The challenge with WhatsApp gifting is that it happens in a closed community on people’s cell phones. Participants do not willingly lodge complaints. The only time they lodge a complaint is when they have lost their money.
“If we do receive complaints we will indeed look into it and that is not to say we are unable to do so on our own accord.”
