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’.
Since their name change to Lyconet, all seems to flourish again.
30.000 distributors in their German training with Eric Worre, Pitbull and Tony Robbins and following the info on BFH, they will pass 1 Billion in sales this year easy.
Can anyone explain me how just changing your name get’s you out of trouble with the law and all the ongoing warnings and court cases against the company?
Lyoness/Lyconet is still being kept afloat by Italy.
Even though the investment side of the business is banned there affiliate investors haven’t yet come to terms with their losses.
So the ruse continues, and Lyoness is currently flush with cash from gullible Italians.
They’re trying to get it off the ground in some Euro countries. Until the Italians realize they’re waiting on vouchers/units that will never mature though, they’ve got thousands of supportive affiliate investors there who still think they’re going to be rich.
Lyoness’ websites were top 1000 Alexa rank for Italy at one stage from memory. That’s a shit load of victims in the making.
It’s flatlined since the regulatory ban but these things take effect in slow motion.
Scambuster. Very easy. Clients, markets a s companies solidify the Myworld company!
We are talking about a multinational company now, in more then 47 countries, with more then 14 million clients already.
Company changed the way you can invest in it. If you 2ant to invest 500 euros, you need to have 500 euros in shoppings with ur clients network.
You can no onger inject thousands of euros into the company for nothing. So cashback might had some setbacks and some wrongs, but everything changes and Myworld changed also.
And don’t call it Lyconet, lyconet is one part of a huge company. Lyconet are the ppl responsible to bring the small and medium companies and clients. Cashback world is the shopping community.
So yeah. It changed, for better.
Some interesting reading on Lyoness’ shell game shenanigans in Europe:
And the return on your 500 euros comes from where exactly?
The 500 euros spent by your clients is completely irrelevant as it has been used to buy stuff.
Sounds to me like Lyoness are attempting to wind up the Ponzi scheme by pretending its liabilities don’t exist.
If you have a Ponzi scheme with hundreds of millions in euros in liabilities and a crappy discount scheme front, and you wash your hands of the Ponzi scheme by unilaterally pretending your liabilities don’t exist because something something new name cashback, then you are left with just a crappy run-of-the-mill discount scheme.
And yes, a crappy discount scheme is better than a Ponzi scheme.
Only problem is that you can’t unilaterally tell your investors that you’re keeping their money, hence the Austrian consumer protection ruling, and no doubt further rulings to come.
I Agree with Tiago.
After a long investigation the company changed for the better. Shopping focus!
Makes a lot more sense, and stable, like that.
Let’s here the news in the future, but I think if they survived 16 years and reach this point, they will continue growing.
And they are too big, with a lot of projects in many sectors. Let’s see
As has been proven in every market Lyoness has collapsed in, the business opportunity dies without investment.
Lyoness is a Ponzi scheme through and through.