Poland’s prime client safety company has dominated Lyoness is a pyramid scheme.
The Workplace of Competitors and Client Safety (UOKiK) handed down their resolution on December thirtieth, 2019.
I imagine nevertheless it was solely just lately launched to public, as evidenced by native information choosing up the story just a few days in the past.
As per UOKiK’s resolution, commissions by way of Lyoness’ MLM enterprise alternative “rely(ed) on the introduction (of) different individuals”.
These recruits made “superior funds”, which is the inherent Ponzi scheme inside Lyoness we first recognized again in 2012.
In abstract, as soon as once more Lyoness’ cashback procuring portal was deemed insignificant in comparison with direct funding.
UOKiK recognized Lyoness’ pyramid scheme as a breach of Poland’s unfair advertising and marketing follow and client safety legal guidelines.
The choice notes Lyoness’ declare that its Ponzi scheme was “discontinued” in Poland as of March 2019.
UOKiK’s ruling additionally paves the way in which for investor refunds. Lyoness is required to tell Polish victims they’re entitled to refunds, and supply particulars of how they’ll apply.
Refunds on Lyoness funding should be made inside 4 months from UOKiK’s order being made remaining.
Lyoness was additionally ordered to pay UOKiK’s authorized prices (which for some motive was solely $50 USD).
In response to being declared a pyramid scheme, Lyoness informed Gazeta Prawna that UOKiK’s resolution was “illegal”.
As well as, the product that the workplace evaluation considerations is not supplied by Lyoness for years.
That is in fact a half-truth. Lyoness has a monitor report of adjusting its firm names when regulators catch on.
In Norway Lyoness tried to evade a regulatory ban by altering the title of its funding scheme to myWorld.
Norway’s Gaming Board noticed by way of the ruse and reaffirmed their authentic ban.
In Poland, Lyoness informed UOKiK “Lyoness” stopped working in March 2019. This nevertheless merely refers to Lyoness altering its title to Lyconet and persevering with to supply the identical fraudulent scheme.
Just like the Nowegian Gaming Board, UOKiK wasn’t enthusiastic about Lyoness’ pseudo-compliance both.
The President of UOKiK discovered that the follow infringing collective client pursuits was the topic of those proceedings was discontinued upon its cessation operating the Lyconet Advertising Program, which passed off on March 7, 2019 along with with the entry into pressure of the Lyconet Settlement for impartial Lyconet Entrepreneurs (Unbiased Lyconet Marketer).
After this date the Program is run by Lyconet Worldwide AG based mostly in Vienna, Austria.
It must be acknowledged that the Firm has not demonstrated that the above requirement was actual and never merely obvious.
Investigations into Lyoness in Poland started in 2013.
BehindMLM first reported on UOKiK (then OCCP) stating publicly that Lyoness “is usually a Ponzi scheme” in February 2014.
In Could 2016 the OCCP dominated Lyoness’ affiliate investor phrases and situations have been unlawful.
By December 2017 OCCP was going by UOKiK, and issued yet one more warning towards participation in Lyoness.
As I perceive it UOKiK’s December 2019 resolution means Lyoness in any capability is now unlawful in Poland.
Right now Lyoness operates as CashBack World. Following a regulatory ban in Italy early final yr, the corporate seems to now be concentrating on Greece.
I’m unsure if December thirtieth is the date UOKiK’s order is remaining, however in case you’re a sufferer of Lyoness in Poland it’s most likely value enquiring a couple of refund.
Replace twentieth October 2021 – As a part of Polish authorities’ efforts to return funds to Lyoness victims, prosecutors have seized $6.4 million from Lyoness’ Polish financial institution accounts.