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Business Practices Committee Report 75

Alpha Club

8. Letter dated 17 July 1998 from the Committee to Sealey



Sealey was informed on 17 July 1998 that MFS/Alpha, was discussed at a meeting of the Committee held on 14 July 1998. Previous correspondence between MFS/Alpha and the Committee revolved round the issue of the availability of accommodation abroad. The Committee also wished to discuss aspects of the marketing strategy followed by Alpha.


He was reminded that on previous occasions the Committee expressed its concern about "money revolving schemes". A copy of Notice 1545 (see section 3) was included in the letter. The Committee required Alpha to explain to the Committee why:


a) "the marketing strategy whereby commissions paid to existing members and management, such as executive partners assistant marketing directors, marketing directors and regional directors or whatever they are called, to canvass new members is not a harmful business practice as defined in section 1 of the Act.


b) the Committee should not undertake an investigation in terms of section 8 (1) (a) of the Act into the business practices of Alpha and those persons responsible for its management".