Pyramid Schemes in Second Life

I’m concerned about the number of pyramid schemes I’ve found lately on Second Life.

I know, I know, you are thinking “if you hate them so much, just don’t participate in them’. I never do. But pyramid schemes have a way of hooking people just the right moment.

Just because a pyramid scheme is in second life doesn’t mean it ‘doesn’t count’. It does count. Lindens are not tokens; they are not a form of ‘virtual money’. It is real money, with an exchange rate based on the dollar.

Pyramid Schemes cause problems for people, regardless of whether they participate or not. Just read the wikipeida entry for ponzi schemes:
http://en.wikipedia.org/wiki/Ponzi_scheme

Pyramid schemes and Ponzi schemes damage the credibility of institutions that failed to keep them in check. If Second Life takes steps to stop this sort of thing, that would be great. But if nothing is done and one of these schemes takes hold, Second Life might be forced by legislation to take some very heavy handed action none of us would like.

NSG

Sometimes I think Second Life itself is a big Pyramid Scheme......

As far as I know, pyramid schemes are not legal in SL. I haven't run across them for a while, but when I do see one of those "make money, pay me 100 $L" prims, I place another, semitransparent prim over it, so the pyramid becomes unclickable. I explain why in the description field of my prim. Maybe not the most elegant way to handle this, but as the Lindens seem to be busy as it is, and anyone running a pyramid scheme is hardly likely to AR me for interfering, it seems to be the most effective way to handle this.

People get away with pyramid schemes all the time in Real life.

You just need a good window dressing so no one beleives its a pyramid.

Amway
Tupperware

etc ..


hehe I thought Second Life was a Ponzi rather than a Pyramid .. can we get a ruling?

You get all those 'Free iPod/PS3/Laptop' schemes atm which are basically pyramid schemes; if you want to get the 'free-gift' you sign up to some stuff and get others to do the same.

So if those aren't illegal then I'm not sure any of the ones I've seen SL can be, except for the ones that are genuinely scams.

there is a difference between 'refer a friend' programs and illegal pyramid schemes. An illegal pyramid scheme requires you to put in money, and then get other people to put in money as well because you will get a part of the money they pay.

the pyramids in SL work like the illegal pyramid schemes.

Ahh right many RL schemes dont require money up front, they just send you a bill for forwarded product.




Basically Its a marketing scheme - the way they get more customers is get someone to beg all their freinds to buy stuff from them, the money climbing to the top of the pyramid.

May be a legal pyramid I guess. w/t/e


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Anyway - its a grey area in Second Life - becuase according to Linden Labs - the L$ is not actually money. So a pyramid or a Ponzi scheme in Second Life doesnt require money up front either, "Technically".

They seem to be fine to let the Ponzi Schemes hum along - Scripted Pyramid Scheme objects they will remove though.

thanks suzy! that's a great idea. I think i will build my own!

NonSmokerGirl

However if you get schemed out of money. It would be a good idea to contact [email=support@secondlife.com]support@secondlife.com[/email]

Pyramid schemes are actually explicitely referred to in the ToS:

Just AR them.

I had several pop up on land near my old plot. I put in ARs, they were gone within a day.