Lyoness pyramid scheme. A response to the concerns sent to the Gaming Board by the public has also been sought. Victims by the Thousands: How Deep Does the Damage Go? MYWORLD INTERNATIONAL AG PREDECESSOR OF LYONESS / LYCONET PYRAMID SCHEMES FILES FOR BANKRUPTCY: myWorld International AG whose predecessors Lyoness and Lyconet were repeatedly classified as May 10, 2025 · For example, Austrian, Italian and German authorities have declared Lyoness’ business model to be an illegal pyramid scheme in several proceedings. In Norway, a final ruling was issued as early as 2023, which classified Lyoness and its affiliated companies as an illegal pyramid scheme. With a similar enough business model, complaints from the public detailing losses continued to pour in. The Lyoness program includes the ability for members to earn various rebates and ^ Shopping network Lyoness accused of running pyramid scheme; company vows to 'vigorously defend' itself against ACCC court action Yahoo News ^ «Lyoness ‘pyramid scheme’ case thrown out by Federal Court». 2 million euro fine in 2019. According to Lyoness, the company was active in more than 40 countries, spread over six continents, and their shopping community consisted of more than five million members as of 2016. Now it’s been revealed the MLM Ponzi scheme is drowning in ~$110 million in debt. The advantage for the members is “mainly from the recruitment of other persons”. Its participants… 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. First there was Lyoness. ‘ Whether or not Lyoness was aware or co-operated with the ACCC in their investigation (supplying data etc. Despite multiple countries certifying Lyoness was a Ponzi scheme and myWorld is a pyramid scheme, to date Austrian authorities have failed to take action. Pyramid schemes involve new participants providing a financial or other benefit to other existing participants in the scheme. BehindMLM began warning consumers of Lyoness’ Premium member Ponzi scheme back in 2012. In addition to this they also reward their members for recruiting in other members and from the members that those people then recruit in. ) is not . The link Lyoness Loyalty Program Benefits, will take you to a version of their loyalty program benefits document. The court found that Lyoness ran afoul of Swiss unfair competition laws by operating as a pyramid scheme. UOKiK’s ruling also paves the way for investor refunds. 2 million EUR. Lyoness has also implemented measures to prevent individual participants from giving incorrect information about the sales scheme, and some Norwegian participants have also been given a refund. UOKiK identified Lyoness’ pyramid scheme as a breach of Poland’s unfair marketing practice and consumer protection laws. In several countries, Lyoness is suspected as being or ruled as being, a pyramid scheme. Oct 7, 2025 · Pyramid scheme allegations and global scrutiny Since its founding in 2003, Lyoness (later rebranded as myWorld) has faced accusations of operating a pyramid scheme. Based on a ton of marketing material and confusion Norway concluded that, while Lyoness had operated as a pyramid scheme, after splitting up the pyramid issues had been addressed. The Pretoria High Court has ordered Standard Bank to freeze the bank accounts of suspected Ponzi scheme Lyoness South Africa. The Federal Court has found that a loyalty program operated by Lyoness Australia Pty Ltd does not contravene the pyramid and referral selling provisions of the Australian Consumer Law (ACL), following action by the Australian Competition and Consumer Commission. In recent years, myWorld more closely resembles a pyramid scheme. 2 million euro in 2019. The Norwegian Gaming Authority recognises that Lyoness has implemented actions to rectify and limit undesirable consequences of its business activity. AGCM also took issue with how Lyoness presented its business model, labeling its marketing practices “deceptive”. The German Federal Financial Supervisory Authority (BaFin) is also investigating the business model with regard to unauthorised deposits. Are you researching MLM companies and wondering about Lyoness? This is everything you need to know about this multi-level marketing company. What Is Lyoness? | How Does Lyoness Work? | Is Lyoness a Pyramid Scheme? | Is Lyoness a Scam? | A Better Alternative What Is Lyoness? Cashback World (Lyoness) is primarily a platform which makes online partnerships with various merchants. In Austria alone, over 2,000 creditors are affected. The Norwegian Gaming Board’s initial 2013 investigation into Lyoness concluded that, while there was evidence of a pyramid scheme, the company appeared to have remedied concerns by rebranding as Lyconet. Lyoness ignored the ban and was again fined 3 million euros in 2021. Through Lyconet, Lyoness continued it’s long-running accounting THE consumer watchdog is taking a popular loyalty card company to court for allegedly operating a pyramid selling scheme. com and report the stores participating. Despite the ban, Lyoness continued its operations and encountered another 3 million euro fine in 2021. Com On 23 October 2015, the Federal Court determined that the shopping scheme operated by various Lyoness companies was not in breach of the pyramid… Lyoness is a loyalty shopping program that rewards its members for shopping. Lyoness: The Dragon's Den Pyramid Scheme | Multi-Level Misery Always Marco 113K subscribers 974 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. Citing new “tips about Lyoness and Lyconet” from the public (media reports cite over fifty), the Norwegian Gaming Board advises they’ve sent Lyoness “information letters” regarding the country’s pyramid scheme laws. The case is interesting as it deals with some of the less-commonly litigated provisions of the Despite Lyoness’ regulatory issues in several other countries, the ACCC’s action against the scheme is ‘ the first court action taken against Lyoness alleging that the Lyoness Loyalty Program constitutes a pyramid scheme. Any hope Lyoness changing its name to myWorld would reverse an earlier ban have been dashed, after the Norwegian Gaming Board reaffirmed Lyoness is an illegal pyramid scheme. A simple open source search on the term ‘Lyoness’ and ‘scam’ will bring up a plethora of articles from around the world of people reporting unsavoury and unscrupulous practices akin to pyramid-scheme-like activity. Australian customers of a global shopping network hope court action against the company could help them get their money back. The decision notes Lyoness’ claim that its Ponzi scheme was “discontinued” in Poland as of March 2019. [9] In several countries Lyoness is suspected as being, or ruled as being, a pyramid scheme Sep 1, 2025 · The Lyoness scam began as an “accounting units” Ponzi scheme in 2003. 121 votes, 35 comments. 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. It has been deemed an illegal pyramid scheme in Norway. Jul 31, 2025 · Lyoness: An old acquaintance of the judiciary Lyoness – now also known as Lyconet and myWorld – has been the subject of regulatory proceedings in several European countries for years. Then, during an investigation by the Norwegian Gaming Board, Lyoness split the MLM side of the business into Lyconet. As at the time of the decision, Lyoness was ordered to immediately cease operating in Norway by the end For instance, Lyoness Italy, where Meixner is employed, faced legal issues as Italian authorities previously deemed Lyoness a pyramid scheme, imposing a 3. The result: a court-ordered closure of Lyconet South Africa. The Australian Competition and Consumer Commission has initiated proceedings against international shopping community Lyoness, alleging the business operates a pyramid scheme and engages in Last month the Federal Court handed down its judgement in ACCC v Lyoness Australia Pty Ltd. This website attempts to refer visitors to their partner’s products. LOYALTY card shopping scheme Lyoness has won a court case against the consumer watchdog, which accused the company of operating a pyramid scheme and engaging in referral selling. Following a second internal investigation, in January the Gaming Board ruled Lyoness was an illegal pyramid scheme. The Federal Court has determined that the loyalty program of member-based online shopping portal, Lyoness Australia, does not contravene the pyramid and referral selling provisions of Australian Consumer Law (ACL). Check out cashbackworld. To address Lyoness operating illegally in Norway again, the Lottery Board sent Lyoness and identified “key Norwegian representatives” a cease and desist. The courts not only awarded damages to the victims but also ordered the company to fully refund all invested funds. As reported by Swiss publication Beobachter on November 11th, Lyoness debt is a result of “a whole series of legal proceedings in recent years”. Lyoness was banned in Norway in 2018. Pyramid schemes are illegal in Italy, and so the AGCM issued Lyoness with another fine. Despite multiple company name changes and rebranding of Lyoness’ original fraudulent investment scheme, investing in points and collecting a ROI when others do the same remains the core of Lyoness’ business model. In addition to be declared an illegal pyramid scheme, AGCM has also fined Lyoness €3. It is hard to know what to make of the company Lyoness, which is under investigation by the Australian Competition and Consumer Commission (ACCC) for allegedly pyramid selling and engaging in Former vice-president of the Office of Competition and Consumer Protection Baehr, then still an office admin, filed an application for declaration as early as in 2017 to rule that Lyoness was a pyramid scheme (“New priority of the Office of Competition and Consumer Protection: Combating pyramid schemes,” DGP of 11 May 2017). Hardly. Lyoness International AG[1][2][3] was a multi-level marketing company [4][5][6][7][8] established in Austria in 2003. In Norway, the system was classified as an illegal pyramid scheme in 2018 and banned by the courts. The scam is still running today. Italian authorities declared Lyoness a pyramid scheme and fined it 3. Sounds a bit like a pyramid scheme doesn't it? But is it really? Is this a good loyalty program that is worth The Australian arm of international shopping community Lyoness says it feels “vindicated” after the Federal Court last week ruled its loyalty program is not a pyramid scheme and did not Last month Lyoness announced it was filing for bankruptcy in Europe. Over the years Lyoness has gone through many iterations, name-changes and associated shell company registrations. Aug 6, 2025 · The Supreme Court of Austria (OGH) reaffirmed in January 2025 that Lyconet and myWorld were simply a continuation of Lyoness ’s pyramid legacy, rendering investors eligible for refunds—a legal wrecking ball that now haunts myWorld’s demise. 826K subscribers in the antiMLM community. Lyoness and Lyconet were repeatedly classified as pyramid schemes by the courts has filed an application with the Regional Court of Graz to open restructuring proceedings without self-administration, according to the creditors' protection association Creditreform. The application was brought on Sunday evening by Jianliu Lin and her Lyoness, myWorld, Lyconet and Cashback are considered together as an illegal pyramid-like trading system, where the income mainly comes from recruiting participants. Multi Level Marketing (MLM) schemes are a drain on our society. An example of that would be Richard Meixner working for Lyoness Italy. 8qd0, m0hvk, 1mgy, z0dj, kmsl, vimzu, wmhbi, jgzk6c, jce8o, awwutv,