Lyoness victims able to recover 2007 to 2012 losses
As part of a consumer protection ruling in Austria, Lyoness has been ordered to compensate victims with interest.
The ruling covers Lyoness victim losses on investments made between 2007 to 2009 and in 2012.
The ruling is based on the finding that the contracts Lyoness used to dupe investors during these years were illegal.
In order to qualify for compensation plus interest on their losses, Lyoness victims have until the end of January 2020 to contact the Austrian Association for Consumer Information (VKI).
Note that participation in Lyoness’ cashback platform are not covered under the ruling.
The ruling specifically applies to Lyoness’ fraudulent investment scheme.
In the scheme, Lyoness affiliates invested in “units” on the promise of returns.
What little returns Lyoness did pay out, were funded almost exclusively by subsequently invested funds.
Following regulatory action in several countries, Lyoness changed its name to Cashback World.
The company briefly changed its name again to myWorld early 2018, however this appears to have been reverted for now.
The Ponzi aspect of the business continues today, under the guise of Cashback World affiliates investing in shopping points and vouchers.
The latest country to take regulatory action against Lyoness was Italy earlier this year.
Lyoness’ Italian victim losses have been pegged at around 50 million euros.
VKI state that for Lyoness victims who invested outside of 2007 to 2012, there ‘could also be individual solutions here‘.
Commenting on the ruling, VKI staffer Ulrike Wolf stated the agency has ‘always and will continue to strive to find solutions that benefit consumers’.