Question from a reader:
I was deceived by a multi-level marketing scheme and now I am in debt. I consulted the police, but they said there was nothing they could do. Is there any possibility of getting some of my money back?

For Those Deceived by Multi-Level Marketing: Is There a Way to Get Your Money Back?

Introduction

Recently, there has been
an increase in consultations regarding multi-level marketing schemes, and during my part-time job at a judicial scrivener’s office, I have heard many stories from victims. In particular, the voice of those who say, “I consulted the police, but they couldn’t do anything,” is truly common. I would like to take this opportunity to consider the legal aspects of multi-level marketing and explore ways to recover at least some of your money.

What is Multi-Level Marketing?

First, multi-level marketing is a business model primarily focused on selling products, but in reality, it profits by recruiting new participants. Typically, participants must purchase expensive products or services initially, and they can earn rewards by continuously buying products or recruiting new participants thereafter. This system becomes unsustainable once there are no new participants, often resulting in many people suffering losses. Therefore, from a legal perspective, multi-level marketing is a very troublesome entity.

Understanding the Current Debt Situation

As mentioned in the reader’s question, becoming involved in a multi-level marketing scheme and accumulating significant debt is an extremely painful experience. I know several cases where individuals got into serious trouble after getting involved in such businesses through friends’ introductions. Having debt means that there is constant pressure to repay it. In the midst of daily life being threatened, it is crucial to explore any possible ways to alleviate that debt.

Reasons Why Consulting the Police Did Not Resolve the Issue

When you consulted the police and they said, “We couldn’t do anything,” this reflects one of the limitations of Japanese law. While multi-level marketing is illegal, proving it is difficult. Particularly, if the victim voluntarily participated, obtaining legal relief is not easy. Moreover, companies or organizations involved in multi-level marketing often cleverly exploit legal loopholes, making it challenging to charge them with “fraud.” Police investigations can also take a long time, so I understand the desire to take action as soon as possible.

Is There a Possibility of Getting Your Money Back?

What you may be concerned about now is how to recover your money. In fact, it is not completely impossible. Here are some approaches to consider.

1. Cooling-Off Period

If you purchased products related to multi-level marketing, the “cooling-off” period may apply under the Act on Specified Commercial Transactions. This allows you to cancel the contract within a certain period and potentially recover the amount you paid. However, there are specific conditions and deadlines for exercising the cooling-off, so prompt action is key.

2. Consulting Consumer Centers

Consumer centers located in various regions accept consultations regarding multi-level marketing. They have specialized staff who can provide specific advice. Experienced counselors will offer guidance tailored to your situation.

3. Civil Lawsuit

In some cases, it may be possible to recover money by filing a civil lawsuit. However, lawsuits require time and expenses, so careful consideration is necessary. Additionally, if the other party is a company, taking legal action may prompt them to hire a lawyer, so gathering sufficient information beforehand is essential.

4. Consulting a Judicial Scrivener

Finally, consulting a judicial scrivener is also an option. I work part-time at a judicial scrivener’s office, so I have gained a lot of knowledge through actual cases. Judicial scriveners are professionals who help protect your rights based on the law. By receiving specific advice and suggestions, you can take a step toward resolution.

Don’t Forget Emotional Support

Being caught up in a multi-level marketing scheme not only causes financial damage but also significant mental stress. When you are troubled by debt, it can lead to feelings of instability and loneliness. It is important to talk to friends and family, and in some cases, seeking counseling may also be an option. Remember that maintaining your mental health can also aid in resolving your issues.

Conclusion

Being deceived by a multi-level marketing scheme is truly a painful experience. It is important to take action to find a way to resolve the debt and mental anguish you are experiencing. I hope you explore the possibility of recovering some money through specific legal measures and consultations with experts. And above all, please take care of yourself and maintain your mental health. I wish for your path to become a little brighter.