9 which of the following is an illegal sales technique? Advanced Guides

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Pyramid Schemes [1]

In recent years many companies have successfully utilized so-called “multi-level marketing” practices. It is important, therefore, to address the differences between a pyramid scheme and a legitimate multi-level marketing company
A pyramid scheme is a fraudulent system of making money based on recruiting an ever-increasing number of “investors.” The initial promoters recruit investors, who in turn recruit more investors, and so on. The scheme is called a “pyramid” because at each level, the number of investors increases
Pyramid schemes are illegal in New York State, as well as in many other states. Article 23A of the General Business Law of the State of New York §359-fff sets forth the criminality of initiating and participating in pyramid schemes (also known as chain distributor schemes).

​​Fair Trading Act [2]

Your rights if a business acts in an unfair or misleading way, including sales tactics and selling unsafe products.. – make sure consumers get accurate information before buying products and services
The Act also gives you special rights if you buy products or services on layby or by uninvited direct sales, or you buy extended warranties that fall within the FTA’s definitions.. Fair Trading Act(external link) — Legislation.govt.nz
Businesses must not mislead or deceive you about the things they sell. This covers anything written or said about products or services, including:

How Gearbest Stores Use Illegal Sales Practices [3]

EXPLAINING HOW GEARBEST SELLERS ENCOURAGE PURCHACES WITH “FLASH SALES”. There are laws in the UK/EU that aim to make retail a level playing field, and you hope competitors will run their businesses according to them
However, many of these laws are poorly policed and rely on the businesses playing fairly. Unfortunately, despite my warning Gearbest that their sellers were using illegal sales techniques many months ago, the practice continues (as of November 2019)
Gearbest is a Chinese online marketplace – so could be described as a Chinese version of Amazon. However, perhaps even more so than Amazon, they tend not to differentiate between themselves (Gearbest) and their sellers; indeed, it is Gearbest that provides the uniform terms and conditions to the customer

Selling goods and services [4]

When you sell goods and services in New Zealand it is important that you understand and comply with consumer laws. If you sell to New Zealanders from overseas the same laws still apply.
Business must also be able to substantiate any claims they make about the products or services they offer for sale.. This applies to anyone in trade – from big players like major retailers, airlines and department stores, to small or temporary businesses like a food truck or souvenir stand.
It includes anything you say about a product or service, either verbally or in writing. It also includes an impression given by pictures, advertisements, promotional material or a sales pitch, or by something which is not said – but is important information that is left out.

Alcoholic Beverage Control [5]

It is a summary of some applicable laws and general suggestions. If you have any questions you should seek independent legal counsel.
Staff must know what to look for when checking ID’s to be able to prevent the sale. They must also know how to deal with the customer once a suspected false/counterfeit ID is presented.
A person does not have a legal “right” to buy alcohol, but you have a legal right to refuse service to anyone who cannot produce adequate evidence of their age.. If you have any doubts about an identification, you should refuse the sale of alcoholic beverages

Regulations that affect advertising [6]

The Consumer Protection from Unfair Trading Regulations mean you cannot mislead or harass consumers by, for example:. Read ‘The consumer protection from unfair trading regulations’ for the rules on advertising legally.
As well as being accurate and honest, you must not make misleading comparisons with competitors, that includes:. – using a competitor’s logo or trademark, or something very similar
Download ‘The Business Protection from Misleading Marketing Regulations 2008’ for more detail about the regulations that cover advertising to businesses.. If you break the regulations, you could be reported to a local Trading Standards office

AS 2405: Illegal Acts by Clients [7]

– .07 The Auditor’s Consideration of the Possibility of Illegal Acts. – .12 The Auditor’s Response to Detected Illegal Acts
The section also provides guidance on the auditor’s responsibilities when a possible illegal act is detected.. .02 The term illegal acts, for purposes of this section, refers to violations of laws or governmental regulations
Illegal acts by clients do not include personal misconduct by the entity’s personnel unrelated to their business activities.. .03 Whether an act is, in fact, illegal is a determination that is normally beyond the auditor’s professional competence

Sale of illegal or regulated goods or services policies [8]

Content intended to sell certain regulated goods and services is not allowed on YouTube.. If you find content that violates this policy, report it
If you’ve found a few videos or comments that you would like to report, you can report the channel.. Don’t post content on YouTube if it aims to directly sell, link to, or facilitate access to any of the regulated goods and services listed below
– Bank account passwords, stolen credit cards, or other financial information. – Endangered species or parts of endangered species

Upselling [9]

Upselling is a sales technique where a seller invites the customer to purchase more expensive items, upgrades, or other add-ons to generate more revenue. While it usually involves marketing more profitable services or products,[1] it can be simply exposing the customer to other options that were perhaps not considered
Upselling is the practice in which a business tries to motivate customers to purchase a higher-end product, an upgrade, or an additional item in order to make a more profitable sale. For instance, a salesperson may influence a customer into purchasing the newest version of an item, rather than the less-expensive current model, by pointing out its additional features
For example, he might say “Would you like some ice cream to go with that cake?” Both techniques increase profits for businesses, but research has shown that upselling is generally more effective than cross-selling.[citation needed]. Upselling techniques work by satisfying the needs of the customer completely- or exceeding them.

which of the following is an illegal sales technique?
9 which of the following is an illegal sales technique? Advanced Guides


  1. https://ag.ny.gov/pyramid-schemes
  2. https://www.consumerprotection.govt.nz/general-help/consumer-laws/fair-trading-act/
  3. https://www.scootered.co.uk/blog/gearbest-illegal-flash-sale-practices.html
  4. https://comcom.govt.nz/business/dealing-with-typical-situations/selling-goods-and-services
  5. https://www.abc.ca.gov/education/licensee-education/checking-identification/
  6. https://www.gov.uk/marketing-advertising-law/regulations-that-affect-advertising
  7. https://pcaobus.org/oversight/standards/auditing-standards/details/AS2405
  8. https://support.google.com/youtube/answer/9229611?hl=en
  9. https://en.wikipedia.org/wiki/Upselling
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