Yes it’s official.

Yesterday afternoon Rod gave us the exciting news that the NSW office of fair trading had classified Liberty League as a pyramid scheme. Eager to confirm the news myself I sent them an email last night and decided to follow it up with a phone call this morning.

I just got off the phone to the NSW office of fair trading and can now confirm that Liberty League has been found to be a pyramid trading scheme and is illegal to participate in or promote in the Australian state of New South Wales.

The following is a direct quote verbatim read out to me by the NSW office of fair trading.

Fair trading has legal advice confirming that the scheme (Liberty League) is a pyramid sales scheme within the meaning of the act. Participants and promoters who are involved in the scheme not only risk losing their money but are also at risk of being prosecuted.

The office of fair trading conducted their own research into the company back in May, 2009. A copy of their written findings is being sent to me via mail and will be posted on OzSoapbox once received. The above information is a direct excerpt from the findings that was communicated to me verbally.

The ‘act’ the above excerpt cites is the Fair Trading Act (1987). In conducting their own investigation into Liberty League, the NSW office of fair trading found that Liberty League was indeed a pyramid scheme because it met the definition of one under current Australian law.

The legality of participating in the scheme is clearly stated in section 60U of the Fair Trading Act:

FAIR TRADING ACT 1987 – SECT 60U

Prohibition on participating in pyramid selling scheme
60U Prohibition on participating in pyramid selling scheme

(1) A person must not participate in a pyramid selling scheme.

(2) A person must not induce, or attempt to induce, a person to participate in a pyramid selling scheme.

When asked who should we report those promoting or participating in Liberty League in NSW I was told to directly report them to the NSW office of fair trading. Theoretically any other regulatory body able to communicate with the NSW office of fair trading should suffice as their findings and legal investigation are now a “precedent”.

In regards to interstate Liberty League associates promoting the Liberty League business in NSW I was advised that this too was illegal and that if reported the NSW office of fair trading is able to take legal action against those responsible.

The penalties for breaching the Fair Trading act are $22,000 for individuals and $110,000 for businesses.

As for other states I was encouraged to lodge complaints with my local office of fair trading (a state by state list of fair trading contacts can be seen in my previous article, ‘Reporting Liberty League to the Australian authorities‘) and to use the precedent set by the NSW office.

The NSW office of fair trading representative stated that although Fair Trading rulings are practically mirrored from state to state, each individual state office of fair trading must conduct their own investigation into a company before officially releasing a statement.

Given NSW has already set a ‘pyramid scheme’ precedent for Liberty League there was a very strong chance that similar findings would be concluded amongst the various states.

If you wish to confirm the status of Liberty League being classified as a pyramid scheme in NSW yourself, you can contact the office of fair trading on their telephone number 13 32 20.

This Saturday Liberty League are holding a mass recruitment Supercharged Saturday event at the RACV Royal Pines Resort in Queensland. Despite receiving no reply to my previous email outlining my concerns about their involvement in hosting a Liberty League event, I have sent another email with these latest findings.

Specifically I cited the fines associated with promoting Liberty League, the fact that they are hosting a recruiting session for an organisation that has been declared illegal in NSW, a link to this post and the contact details for the NSW Office of Fair Trading so they can verify the claims themselves.

I encourage you to do the same, the RACV Royal Pines Resort can be contacted via email at enquiries@royalpinesresort.com.au

NSW Liberty League associates can be directly reported to the NSW office of fair trading for breaking the law either by telephone (133220) or online.

I have maintained since my first article on Liberty League that the company is nothing more then a MLM pyramid scheme and findings of the NSW office of fair trading is wonderful news.

Their findings, along with the many experiences shared by readers, the information provided to me by ex-associates (you know who you are) are what has made this action possible. I never dreamed of the response I’d get in writing about what I thought was just an annoying television ad at the time.

Well done guys and thankyou for letting me be a part of it.