![]() ![]() Although these schemes can appear to be legitimate, the most significant inducement for new members to get involved is to earn ‘residual’ or ‘passive’ income from new members signing up,” ACCC Chairman Rod Sims said. “Pyramid schemes are often sophisticated and may be operated under the guise of a legitimate business. Whilst cash back offers themselves are not prohibited by the Australian Consumer Law (ACL), the ACCC alleges that the Lyoness scheme also offers commissions to members who recruit new members who make a down payment on future shopping. The scheme offers ‘cash back’ rebates to members who shop through a Lyoness portal, use Lyoness vouchers or present their Lyoness card at certain retailers. ![]() The ACCC alleges that Lyoness has operated the scheme in Australia from mid-2011 and that it continues to operate the scheme. Stopping short of referring to the scheme as an outright Ponzi (which it obviously is), here’s how the ACCC explain the problematic nature of Lyoness’ compensation plan: Despite the mountains of smoke and mirrors Lyoness have armed their affiliates with, I’ve maintained that nothing excuses or justifies the Accounting Unit Ponzi scheme Lyoness has buried in its compensation plan. Lyoness International AG, Lyoness Asia Limited, Lyoness UK Limited and Lyoness Australia Pty Limited (together ‘Lyoness’) (are) operating a pyramid selling scheme and engaging in referral selling.īehindMLM first reviewed Lyoness back in 2012 and the discussion over the legitimacy of the company continues even today. Our primary responsibility is to ensure that individuals and businesses comply with Australian competition, fair trading, and consumer protection laws – in particular the Competition and Consumer Act 2010. ![]() We also regulate national infrastructure services. Promotes competition and fair trade in markets to benefit consumers, businesses, and the community. It’s not exactly how I pictured easing myself back into blog coverage of the MLM world, but news broke last night that Lyoness are being prosecuted by Australian regulators.Īs per their website, the Australian Competitor Consumer Association (ACCC) ![]()
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