New members were then required to recruit five new participants. The original investor would then help the five he or she recruited to each sign up five new members. This was termed level one. This would then ensure that the original recruiter moved to level two, whose benefits were a meat pack, groceries and R500.

When those on level one were moved up to level two through their recruits, the original organiser was pushed to level three. This would entitle the investor to receive level two benefits, plus R3,000.

Deputy trade, industry and competition minister Nomalungelo Gina on Monday welcomed the tribunal’s decision, saying it sent a strong message to South Africans not to promote, join or participate in any pyramid schemes.

“While Up Money promoted their scheme as a ‘stokvel’ to lure participants during the pandemic, the tribunal confirmed that it is not a stokvel but a pyramid scheme, as their operation fits the description of a pyramid scheme as provided under Section 43 of the CPA. Up Money’s business model was unsustainable as it relied heavily on new participants feeding into the scheme,” Gina said.