The Australian Competition and Consumer Commission (ACCC) has instituted proceedings against Lyoness International AG, Lyoness Asia Limited, Lyoness UK Limited and Lyoness Australia Pty Limited (together ‘Lyoness’) for operating a pyramid selling scheme and engaging in referral selling.
Although Lyoness has been investigated by regulators for conduct in other countries, this is the first court action taken against Lyoness alleging that the Lyoness Loyalty Program constitutes a pyramid scheme.
Pyramid schemes involve new participants providing a financial or other benefit to other existing participants in the scheme. New participants are induced to join substantially by the prospect that they will be entitled to benefits relating to the recruitment of further new participants. Pyramid schemes may also offer products or services, but making money out of recruitment is their main aim, and often the only way for a member to recover any money is to convince other people to join up. In contrast, people in legitimate multi-level marketing schemes earn money by selling genuine products to consumers, not from the recruiting process.
The ACCC alleges that Lyoness has operated the scheme in Australia from mid-2011 and that it continues to operate the scheme. The scheme offers ‘cash back’ rebates to members who shop through
Tag Archive for Scam
Hot Business News Today
Vemma CEO Responds To Accusations In The Media
by Ted Nuyten • • 0 Comments
BK Boreyko, CEO Vemma, reponds to accusations in the media in the next statement to Vemma Elite members:
“Last year, together we accomplished something only 18 out of the thousands of networking companies in the world did – we GREW by $103 million to finish at $221 million! This marked the biggest, most successful company in my career. It just figures when you’re bigger than ever, you’ll receive more negative attention than ever. I don’t understand why success attracts negativity, but it always has and I guess it always will.
The recent media coverage on Vemma has been disappointing. Our strategy to move to affiliate marketing and improve our business model was designed to make our opportunity more attractive. Well, I learned early on to turn my disappointments into determination. I don’t know what fires you up, but hate towards what we do and who we help is my fuel for the future!
Let’s talk a bit about the media and their view on what we do. Recently, the producers from the Today Show asked for comments on these topics below and our answers were on point. Some of the topics made it into the show, some didn’t. Below I’ve expanded our responses