Lyoness an “illegal pyramid scheme” in Norway, banned from operating
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.
With a similar enough business model, complaints from the public detailing losses continued to pour in.
That prompted the Gaming Board to open a second investigation into Lyoness, the result of which was finalized on January 11th.
In an announcement dated January 18th, the Norwegian Gaming Board advised it had sent Lyoness a notice ordering to immediately terminate business operations in Norway.
The Gaming Board estimate Lyoness has 150,000 affiliates across the country.
As per the Gaming Board’s announcement, an internal investigation into Lyoness revealed the majority of affiliates earn the majority of their commissions via recruitment.
Based on the number of received tips in 2016 and 2017 and the content of these foundations, the Lottery Authority has assessed whether Lyoness is an illegal pyramid-like sales system pursuant to section 16, second paragraph, of the Lottery Act.
In the assessment, we have assumed that revenues from Lyoness’s business in Norway are mainly from the acquisition of participants, and not from sales or consumption of goods, services or other benefits.
Within the context of Lyoness’ business model, this is because trying to generate units via shopping is not practical.
In Lyoness it’s always been far easier to invest a few thousand dollars or euro, and then focus on recruiting others who do the same.
When those recruited invest, that pushes your own units toward maturity (upon which a ROI is paid out).
The equivalent through shopping at Lyoness merchants, of which there are purportedly 1000 or so in Norway, could take years.
We have paid particular attention to the fact that Norwegian participants in Lyoness do not receive or consume goods, services or other benefits from the sales system that correspond to the value of what is paid when paying for them.
As a result, the participants’ payments to Lyoness are considered as consideration to participate in a pyramid-like sales system.
The income of the company and individual participant comes almost exclusively from the replacement of new participants and their payments to Lyoness, and not from sales or consumption of goods, services or other benefits.
Lyoness has four weeks to reply to the Gaming Board decision.
Sounds like they’ve actually done their homework this time around though, so I’d be very surprised if the decision was reversed.
In the meantime Lyoness has come up for a third name for itself. The company now primarily markets itself under “Cashback World” branding.
Same AU investment scheme underpinning the operation though. Which ultimately means, as the Norway investigation revealed, Lyoness affiliates are still mostly just getting paid to recruit.
Update 13th February 2019 – On February 12th, 2019, the Norwegian Lottery Board announced it had rejected Lyoness’ second appeal.
As of January 26th, 2019, Lyoness has been permanently banned in Norway.
Ralf Gold from USI Tech was involved in Lyoness a couple of years ago. I wonder how deep his involvement was.
this is the most important for all lyopimps:
Press Release It reports BA (requires subscription)
What you attach to a Ponzi/pyramid scheme is and always has been irrelevant.
Lyoness will challenge the decision and flood the Gaming Board with marketing material that focuses on shopping (even though that’s not the primary source of AU revenue. Hopefully they don’t fall for it (again) and the decision is rendered permanent.
Yes, that’s correct:
The internet does not forget anything – and that’s just as well!
Internet forgets a lot unfortunately. Companies like Lyoness do utmost best to get negative publicity removed. Oz wrote about this earlier too.
Lyoness and Hubert Freidl…….. a long dark history.
Newspapers from Germany and Austria report regularly
about lawsuits against Lyoness. Have a look at this screenshot:
They do, but not nearly as much as they should.
Have a look here for what I mean:
Have also a look at removed videos about Lyoness all around the internet. Such as Dragon Den and Orf report.
@Prevara to some extent 😉
The sooner the authorities shut down the Lyoness scheme the better.
Freidl is really just a very small man with a very big pyramid/ponzi scheme ripping a lot of people off around the world.
Mr Craig Wotton??
you where pushing lyoness before.. as a director in Aussie land?
you sold me on Lyoness before
do not shit in your own bed mate…
Hey, so what happened now? Is it shutdown in Norway?
Not yet. Decission could be different. They changed some rules and now everything gonna be all right.
Nah. Gaming Board certified Lyoness is an illegal pyramid scheme in Norway.
Nothing further after that decision has surfaced.
What will it take for the Australian government to boot Lyoness out of Australia?
The money being invested in Units is definitely a ponzi scheme, so many people are investing and Lyoness is being promoted by Chris Rxx on the Central Coast, he got so many people to invest that it pushed him to a level 7, Of course he has come crashing down because he can’t sustain recruiting new members to invest.
Surely there are financial laws preventing the promotion and if there are why hasn’t CR been investigated by the Government.
The ACCC buggered up their Lyoness investigation.
They basically did what the Gaming Board did first time around:
“Hallo there, we believe you might be a pyramid scheme. Can you explain “Accounting Units” to us?”
“Relax guy, here look at this marketing material.”
“I see. Well there’s nothing in here about Accounting Unit investment. Case closed!”
Where is the proof that it’s finally banned in norway? I cannot find an Update
It’s linked in the article, the Gaming Board sent Lyoness a notice ordering it to cease business operations in Norway.
Why Norway is getting NEW COMPANIES IN EVERY DAY??? THEN?…AND WHO DA FK IS GAMING BOARD?….
CASHBACKWORLD is the biggest company in the world in 5years open your eyes…. dont listen to others… they dont pay ur rent!… WAKE UP PEOPLE!
Why is AMAZON partner now?!?!?!? why????? WHY IS MILANO INTER PARTNER NOW????? WHYYYYY????
cuz of u think this is still pyramid?:D…open eyes people….(Ozedit: Offtopic derail attempts removed)
They’re not. Lyoness is illegal in Norway.
Only the top business regulator in Norway. But hey, I’m sure if you rocked up and asked to speak to the person running the Gaming Board and explained who you were they’ll reverse the decision.
No, no it isn’t.
If you have to resort to Ponzi scamming to pay rent you’re doing life wrong.
They’re not. Lyoness buy giftcards and affiliates run around claiming false partnerships. This has been going on for years.
That the sports club? Because someone high up got suckered into investing and now they’re hoping to milk the entire fan base.
There’s no need to think about it. Facts are facts and Lyoness’ business model is a combination of pyramid and Ponzi fraud.
“CLOUD PROGRAMS” meaning cyber down payment pyramid scheme.
True loyalty programs operate without the need of a pyramid scheme constantly searching for new victims to make down payments.
Had Lyoness of been what it was represented as prior to us launching the Australian company it could have been a great opportunity for both retailers and consumers to benefit from, but shortly after dealing with the owners of Lyoness we realized that the promises made to us and the Australian members were not going to be honoured, namely the 1 million customers that were represented during the launch of Lyoness in Australia.
I have not been a director of Lyoness since late 2011 but have followed the conduct and numerous cases around the world as more and more actions have been taken by both regulators and Lyoness victims to deal with the allegations of fraud, pyramid & Ponzi scheme, misleading and deceptive conduct and the list goes on.
Like many people that have contacted me I am chasing Lyoness to return the down payment investment I paid in good faith for benefits that have not been delivered.
There was very little if any negativity on the internet exposing Lyoness when I accepted the position of Managing Director of Lyoness Australia and not much was known to us about how the scheme functioned.
Following the numerous investigations, lawsuits and current affairs programs that have since aired stories on Lyoness it is evident what the core objective of the scheme is.
We understand that the fraud police are currently looking into the conduct of Lyoness in Australia and trust that a satisfactory result will be achieved to recover money that we allege has been defrauded from us.
If you feel that you have paid Lyoness for benefits that have not been delivered I suggest that you contact the Australian Consumer Competition Commission and file a formal complaint.
If you have been ripped of by Lyoness tell your story to Channel 9. This is the biggest scam in history, and in Australia the main instigator is Chris Retxxxx.
I hope he has plenty of insurance for giving people wrong investment advice. He is from the Central Coast, NSW Australia. Purchased the top position in Australia for close to 180K and has done his money.
He is now conning people everywhere to invest 15K into this Ponzi scheme which gives him commissions. Wake up Australia; save your money… you will do far better putting your money in a traditional bank.
Submit your story to Channel 9…
Where is the proof it is banned from norway? Theres no proof at all. Its just very bad and wrong advice. Shame on you.
Do you even read bro?
but that does not proof that they really did it?
The Gaming Board stating Lyoness is banned in Norway on their website isn’t proof they banned Lyoness in Norway?
Talk about clutching at straws…
Lyoness Website in Norway is still running, which means they are live, happy and working as nothing happened. I think this is the ultimate proof, anything else is a small talk.
That’s not so much a “Lyoness website in Norway” as it is a replicated version of the Lyoness website translated into Norwegian.
The denial is strong in this one. The Gaming Board has clearly banned Lyoness from operating in Norway, it’s not rocket science.
Well, what does this exactly mean?
If you can STILL buy things in Norway from Lyoness merchant partners and receive Casback, if their office in Oslo is STILL working, if Lyoness members are STILL receiving their bonuses on their bank accounts, does this look like a banned operation?
It’s one thing what we want to believe and discuss here, but the evidence in real life is completely different.
It means Lyoness has been banned in Norway. You can read the source material on the Gaming Board’s website.
If we look at WorldVentures, they were banned for being a pyramid scheme in February, 2014. They filed an appeal though and lost in November.
It wasn’t until December, 2014 however that they actually terminated business operations in Norway.
Perhaps a similar scenario is playing out here? A Norwegian affiliate could probably ask the company and provide a response.
Meanwhile all I have to go on is what the Gaming Board published.
see the update on Lyoness case from Lotteri- og stiftelsestilsynet:
Not really understanding why this is a thing.
“You’re a pyramid scheme.”
“But but but we changed our company name!”
“Oh, well that’s different. Please send us information on your new company name.”
Same business model == same scam.
Another ‘change of name’ to disguise the true pyramid/ Ponzi scheme.
What happened to the most recent name changes. Lyoness to CASHBACK WORLD and Premium Member to LYCONET.
Now we have ‘myWorld’. What next??
The other names (brands) are still there, up and running as before under my World! myWorld is not a change of name! You just don´t get it right!
Then why did Lyoness tell the Norwegian Gaming Board it is?
Just to inform everyone, Norway is working.
Disbelief in the judicial system behind these comments is simply astounding.
15 years of Piramid fraud? No one can interrupt Lyoness activities in 47 countries to date?
If you are here asking your question, I tell you the truth:
Network Marketing is Difficult
Lyconet is difficult
But it’s worth it if you’re willing to work for 3/4 years bringing in SMEs, clients and building a team.
If you follow the advice of an ANTI-Network Marketing blog regarding any NetworkMarketing company, it will be bad information.
If you see hours of Youtube videos regarding to Flat Earth, you end up doubting your own knolage about the shape with Earth.
FACTS: Network Marketing is a legitimate business model for more than 30 years.
Lyoness has 15 years in the market.
Well, Cashbackworld is still there, no change at all. “My world Group” is not replacing that brand:
So you may have choosen to missundersatnd the whole thing?
Lyoness primarily target third-world countries with little to no regulation. Like the country you’re from.
It has to start somewhere. It has to start somehow. What better time than here? What better time than now?
“Hay guys, we ran a Ponzi scheme for 15 years” isn’t justification for financial fraud.
BehindMLM is characterized as an anti-MLM blog only by those who support scams. We’re anti-scam and our eight year track record proves it.
Following the advice of Ponzi scammers can ruin your life financially and emotionally. That and you’re guaranteed to get “bad information” from them, every time.
Fact: Lyoness is a Ponzi scheme that has nothing to do with legitimate network marketing. Thank you, come again.
Nope. The Gaming Board classified Lyoness as a pyramid scheme.
Lyoness informed the Gaming Board they’d changed their name to myWorld and that seems to have prolonged Lyoness shutting down in Norway until the Gaming Board responds.
Otherwise they would have closed you down by now!
If you can’t see the difference between “we’re not a Ponzi scheme because we’ve been scamming people for x years” and “you can read our eight years of articles covering financial fraud”, you might be a lost cause.
Wow that’s beautiful.
More evidence of ‘misleading and deceptive’ actions by Lyoness/ Cashback World and now ‘myWorld’ to it’s judged PYRAMID Scheme activities:
Open in Chrome to translate!!
I had hoped you had a slightly better sense of humor.
I debated how to take it in my mind for a few seconds. Better safe than sorry!
Fair enough. Truth is truth, and the truth is Lyoness is a fraud no matter how long they’re allowed to continue.
I believe Madoff got away with his for at least 20-30 years. But if a blog would start today, and wrote that, they’d be just as right as you are. Ie. track records are overrated.
Context is everything.
A scam feigning legitimacy based on how long it’s been running is meaningless.
Determining the nature of a publication based on its publishing history… well, what else are you going to base that determination on?
Publishing history, okay. That’s a lot to wade through. Years online or in business, no.
I like your writing style, it is usually quite easy to doublecheck your facts. And follow your arguments.
I think those should always been the main sources of verification.
More evidence of ‘misleading and deceptive’ actions by Lyoness/ Cashback World/ myWorld.
May 3, 2018/
The fact is! There has never been a BAWAG PSK “Cashback Card”!
As already reported, BAWAG PSK has now confirmed in writing that there is neither a BAWAK PSK Cashback Card nor a cooperation with myWorld (formerly Lyoness Europe AG).
Upon request, BAWAG PSK Communications communicated in writing (email is available) with:
“Dear Mr. Ecker,
Thank you for your mail and your question about Lyoness. We may note that there is no business relationship between BAWAG PSK and myWorld / Cashback World (formerly Lyoness Europe AG).
BAWAG Group Communications ”
This now proven lie message is spread in the social media since mid-2017 and unsuspecting interested once again criminally deceived.
More information at: http://benecker.com/blog/
Open in Chrome to translate.
Well said Chris, Lyoness fooled many people with the MasterCard scam. Many businesses in Australia joined Lyoness due to the false statements.
It’s not surprising to read the article from Ben Ecker, no doubt there will be many more.
What I fail to understand is the scam with the units. In Australia we are constantly shown success stories of overseas leaders making large amounts of money. Yet no one in Australia is making decent money.
It’s about time the ACCC investigated Lyoness again and take the time to properly ensure their case focuses on the pozi side of Lyoness.
I don’t understand how so many people are enticed to invest in units and it’s ignored by the ACCC. In Australia there are laws about financial advice and investing.
One particular Lyoness leader in Australia should be prosecuted, who has enticed many people to invest 15k into units to push himself up to a level 7.
He had to buy his position from another leader and couldn’t make it on his own. I hope he will be charged by the ACCC for falsifying investment information.
Lyoness is an evil company that has conned people all over the world. Norway has done a good job prosecuting Lyoness. I hope this will be the start for many other countries to follow.
did norway really ban lyconet? They said it, but did they do it?
They did and then Lyoness wrote back to them stating they’d changed their name.
AFAIK the Gaming Board is going over some new marketing material Lyoness sent them (with respect to the name-change).
Not sure yet why the Gaming Board didn’t just apply the ban to MyWorld and all the other names. Maybe they have procedures they have to follow.
Same SCAM, Different NAME trying to hide from the REGULATORS!
Lyoness (Cashback World) lie convincingly, and have plausible Marketing material that makes them look legit. But just a little due diligence would uncover the truth.
I’ve contacted Woking Council and the local newspaper with evidence of the lies that CashWorld tell and they just aren’t interested. taratalkstoday.blogspot.co.uk/2018/05/woking-council-why-are-they-still.html
Not likely anything will change when the counselors in charge are pushing a Ponzi scheme.
The other borough was a bit different as the rest of the council wasn’t on board IIRC.
You have been trying to “Expose” Cashback World now for years already lol.
Please continue your efforts in wasting your time as the company is growing stronger from year to year.
Our cryptocurrency is also based on shopping and is backed by the European zone regulator.
I can confirm that the company is doing very well in Norway and 100 of merchants are joining the Cashback Program.
Those Norway posts you guys are sharing have no weight at all please go to Noway and see for yourself how well the company is performing there.
(Ozedit: Unsupported marketing spam removed)
Please continue your worthless insults if you are a man you will debate me on Youtube live, but we all know that you will not do that.
Facts are facts, Lyoness is a Ponzi scheme. There’s no need to “try to” do anything.
If you reference Alexa, you’ll actually see Lyoness has been migrating from one country to another once new investor recruitment dries up.
Italy is probably ready to burst… and no backup country has emerged. That’s not healthy for a Ponzi scheme.
Feel free to provide a statement from the Norwegian Gaming Board reversing their prior decision that Lyoness is a pyramid scheme.
They may take some additional time for enforcement to process Lyoness’ “but we changed our name!” documenation, but that’s neither here nor there.
And please don’t waste both our time trying to legitimize a fraudulent business model through legitimacy.
You’re not related to Ken Labine are you?
Jokes aside, no need for debate. Lyoness use newly invested funds to pay off existing investors, first through AUs, now through cloud units and invested voucher positions.
New and existing Lyoness affiliates invest $x.
Then once enough additional investments have been made, Lyoness pay the investors >$x with subsequently invested funds.
The only way to make money in Lyoness/ Cashback World/ now called ‘myWorld’ is to join as an independent LYCONET MARKETER and SCAM your family and friends into buying ‘Booked Accounting Units’ in the Balance and CLOUD Programs and then get them each to SCAM their family and friends to do the same and on and on it goes.
It’s been judged a PYRAMID Scheme in many EU country’s.
DONT BE A LOWLIFE AND SCAM YOUR FAMILY AND FRIENDS TO MAKE MONEY!!
So? How much marketing budget has Lyoness vs. one blogger with budget of zero?
And how many Lyoness name changes had happened? Why a name change if the old one works? There’s a LOT of goodwill and brand recognition tied up in a name.
Your marketing speech is just that: a one-sided narrative crafted without regard to the WHOLE truth.
The problem is that you guys have the information wrong it, not the same name that changed Lyoness changed to Cashback World once and Myworld is a group of companies for Example under Myworld you have Lyconet, Cashback World, Eyetime, White Label Solutions.
Every name is for a different sector within the company as it is expanding.
MyWorld is the Parent Company.
The fact you guys can continue to bad mouth this company but it does not change the fact that the court’s cases were thrown out and that we have not closes 1 door in any country.
Oz says the fact that companies (Ozedit: Unsupported marketing spam removed)
Everything but addressing the fact that Lyoness uses newly invested funds to pay existing investors.
Blahblahblah shell companies nobody cares. Lyoness == Lyconet == Cashback World == myWorld.
It’s all the same company, changing names solely in an attempt to dodge regulators (we see it frequently with scams as their banking channels close).
What court cases? Lyoness copped it hard in Austria and Norway ruled it a pyramid scheme.
If you cannot source your bullshit don’t post it. And stop your silly legitimacy by association nonsense.
Who Lyoness partners with has nothing to do with it being a Ponzi scheme. You cannot legitimize a fraudulent business model by association.
Downlines say the funniest things. My cat has an ISO 9001 2008 certificate after I sent off the tokens from the back of the cereal packet for her.
Being audited once a year is a basic requirement of any business and is mandatory for any incorporated company over a certain size in most developed jurisdictions. Trumpeting “we are audited once a year” as if it proves anything means you are a scammer.
Moto GP is a financial regulator now?
Nobody ever said that getting rich quick via a Ponzi scheme was easy. All that humiliating yourself on social media, all that badgering your mum and your family and all your friends to sign up… exhausting. But the fact that it’s hard does not mean it creates something of value.
Incredible! Another new authority that I do not know? Does this “authority” also have a website where you can get information?
If it LOOKS like a DUCK, QUAKES like a DUCK and WALKS like a DUCK – It’s a DUCK!
The ISO 9001:2008 certificate is outdated and only valid until 15 September 2018. This certificate is not an award. It only states that the Lyoness management meets minimum requirements.
The current ISO standard is called ISO 9001:2015
Yes, I know that. But it, not a certificate that A Ponzi or scam can obtain.
I think I’m wasting my time here I’m talking to a handful of people who are convinced this is a scam. There are (Ozedit: Unsupported attempts at legitimacy by association removed)
Yet it always was supposedly about shopping, wasn’t it?
The fact that you can’t even name the “different sector” they supposedly cover says a lot about this explanation you pulled out of your (bleep).
Sure they can. Lyoness is made up of a ton of shell companies. Who can even keep track any more.
You still haven’t addressed the fact that Lyoness uses newly invested funds to pay off existing investors.
Bunch of lies..
I’ve studied the company and met many people who succeed in life through this company, the company, it is clean and does not have anything to do with pirâmide or scam.
Banks hates it as it’s the only company that’s creating the biggest crypto currency in the world plus its offering back the power to people through casback card unlike credit and bank cards that charge a percentage whenever we use they cards.
Rather than study anything, sounds like you ignored the facts and instead deep-throated Lyoness’ marketing.
Best of luck bagholding Lyoness’ shitcoin and sorry for your eventual loss.
Now they doing Scam in India some of German Marketers recruiting Peoples in India to fool other peoples.
I never heared a positive review on internet about lyconet they targetting business people and fooling them by selling membership through their agents whom they call merchant marketers.
As they showing big Company tieups they are fooling as they using affiliate program of these companies and other other small merchant they fooling by selling membership plans.
I have seen lots of peoples taking about iso certification the i would like to make you aware iso certificates can be purchased it is sold to companies so its not a big deal to obtain that certification.
Stay away from lyconet.