Friday, August 29, 2014

BREAKING NEWS: Australia authorities sues Lyoness; alleges pyramid scheme and referral selling

According to press release from ACCC (Australian Competition and Consumer Commission) has launched a lawsuit to shut down Lyoness and related entities from operating in Australia. According to ACCC: 
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 a Lyoness portal, use Lyoness vouchers or present their Lyoness card at certain retailers. 
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.
“Under the Australian Consumer Law, it is illegal not only to establish or promote a pyramid scheme, but also to participate in one in any capacity," Mr Sims said. 
The ACCC also alleges that the conduct by Lyoness breached the ACL prohibition on ‘referral selling’, where a consumer is induced to buy goods or services by the promise of a commission or rebate contingent on a later event.
First hearing is set for September 16, 2014 in Australia. No word from Lyoness just yet.

(Thanks for BehindMLM and PatrickPretty for the heads-up)


  1. Lyoness press release denies any and all charges.

  2. @Kasey Chang. And what should Lyoness say in their press release? That they are guilty? How dumm are some people. No wonder companies like Lyoness take your money.

    1. You are assuming that Lyoness took my money.

      I analyze companies. I don't participate in them.

    2. any news from the hearing?

    3. @Anonymous: Lyoness have submitted their defence in October 2014, and the next hearing will be in February 2015

      @Kasey Chang - These people not only analyse companies but also invest in them and based on who they are, I'm inclined to go with their analyses:

    4. Lyoness promoter was laughed out of the studio. Seen that YEARS ago.

  3. Laughing or not, the company is growing tremendously. When something is doing so well,
    everyone wants a piece of the pie and because of it we will have many lawsuits. They might have no merit. Right now we have credit's cards war. Everyone is coming up with different offer.

  4. Federal Court finds Lyoness scheme NOT pyramid

    The Federal Court today found that Lyoness is NOT a pyramid scheme, as previously alleged by the ACCC.

    This link will take you to the ACCC Media Release, issued today.

    The Lyoness 'News Release' can be found at this website link:

    1. At least not according to Aussie law.

      But as long as Lyoness has that provision to buy AU without shopping, it will always be under suspicion.

      So take it for what it really meant: Lyoness seems to be more shopping club than pyramid scheme.