In response to authorities asserting a preliminary investigation, Lyoness has suspended funding from Italy.
Late final month the Italian Antitrust and Shopper Safety authority revealed it had begun a preliminary investigation into Lyoness’ enterprise actions.
Specficially, the AGCM had been specializing in
- Lyoness’ deceptive phrases and situations;
- misrepresentations concerning the precise likelihood of being profitable in Lyoness; and
- how Lyoness is marketed in Italy (in a broader sense)
Inside forty-eight hours of reports of the AGCM’s investigation breaking, Lyoness knowledgeable Italian associates it was suspending its voucher funding scheme.
A message within the backoffice of Lyoness’ Italian associates reads;
With this Communication we inform that no shopper who’s collaborating or will participate within the Lyconet Advertising and marketing Program will be capable to order Low cost Vouchers or Restricted Version Low cost Vouchers.
Particularly, the Firm informs that in consideration of the upgrading of the Lyconet Advertising and marketing Program, the acquisition of Low cost Vouchers and Restricted Version Low cost Vouchers for entrepreneurs wishing to participate within the Lyconet Advertising and marketing Program won’t be quickly doable.
Recall that entry to the Lyconet Advertising and marketing Program is free.
Initially “accounting items“, at the moment Lyoness orchestrates its Ponzi scheme by way of “low cost vouchers“.
Tellingly, Lyoness don’t inform their associates as to why they’ve suspended voucher funding.
The irrelevant procuring cashback facet of Lyoness will nonetheless function in Italy. With out the Ponzi facet of the enterprise to carry it up although, count on a pointy downturn in Italian Lyoness exercise.
Which finally might spell catastrophe for Lyoness as an entire. Alexa at present estimate that Italy makes up just below half of web site site visitors to the Lyoness web site.
Keep tuned…
Replace fifteenth January 2019 – AGCM has concluded Lyoness is a pyramid scheme and fined the corporate €3.2 million euro.