Soliciting investments from the public without the appropriate license from the SEC is illegal in any case. Hence, if you are a business owner, you should be mindful of business practice that in effect is offering investment to the public.
This advertisement about My First Love (MFL) Massage Chair by Positive Living, in our opinion, is selling an investment contract to the public.
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Positive Living Product Investors Ownership Program
Who are product investors?
Based on the video, these are the people who will invest in and earn from Positive Living’s product which is the MFL massage chair.
How much is the investment required?
A staggering Php180,000 and up!.
The video says the program is a win-win-win venture for the company, the investors, and the customers because it ensures the following:
- Product Affordability
- Product Quality
- Business Traffic
- Suitable Location
- Human Resources
- Manageable Capital
How to Earn as Product Investor in Positive Living
As a product investor, you will earn monthly fixed revenue from your rented massage chair. After four years, you will have an option to sell the product back to the company.
Positive Living makes it easy for you to make money; they will find the customers for your massage chair.
The company says it executes a data-driven marketing and strong customer acquisition strategy through various opportunity-generating platforms; such as mall branches, head office showroom, Facebook advertisements, and influencer marketing.
Moreover, it says:
Be part of our mission to bring health and life fulfillment to everyone’s home while being financially rewarded.
Why We Think Positive Living is Selling an Investment Contract
First, let us know what an investment contract is.
The Implementing Rules and Regulations of the Securities Regulation Code say it is a “contract, transaction or scheme (collectively ‘contract’) whereby a person invests his money in a common enterprise and is led to expect profits primarily from the efforts of others.”
Based on the definition, the following are the elements of the investment contract.
- A contract, transaction, or scheme;
- Investment in money;
- In a common enterprise;
- With the expectation of profits;
- Primarily from the efforts of others
Now let’s find out if Positive Living’s Product Investors Ownership Program satisfies all the elements mentioned above.
Contract, Transaction or Scheme
Positive Living is selling “Investment Packages” through its Investors Product Ownership Program to the investing public, where it agreed to issue MFL Massage Chair, and pay fixed monthly fixed revenue from the rented chairs.
Investment in Money
Investors pay Php180,000 and up in exchange for massage chair/s and fixed monthly revenue.
Investors put their money in a common enterprise consisting in the operation and maintenance of a massage chair business that offers investment packages in a form of product investors ownership program.
Expectation of Profits
Investors expect to receive a fixed return from the rented massage chair. Investors expect passive income from their investment.
Primarily from the Efforts of Others
Investors expect to earn profits from the effort of Positive Living. As mentioned in the video, the company will find clients for the investor’s massage chair.
The Securities and Exchange Commission (SEC) of the Philippines is strict when it comes to selling investment contracts to the public. It requires the company to secure a Secondary License and register its security before it is offered for sale to the public.
Is MFL Massage Chair Product Ownership Program by Positive Living Legit or Scam?
We believe MFL Massage Chair Product Ownership Program is a scam because it looks like an investment contract. Positive Living has no license to sell this kind of investment.
Scam, according to the Cambridge Dictionary, means:
an illegal plan for making money, especially one that involves tricking people
Positive Living has a product to sell; the MFL Massage Chair. However, we believe that its investors’ product ownership program is done illegally.
We can’t find evidence that Positive Living has secured a Secondary License and registered its investment contract with the SEC. Thus, we think that the investors’ product ownership is a scam.
We suggest you stay away from Positive Living’s investor’s product ownership program.
We believe it is an investment contract that requires a Secondary License to sell and be registered with the SEC first before it is offered to the public.
We think it is an investment scam.
What are your thoughts on the Positive Livings investor’s product ownership program?