Norway reaffirms Lyoness illegal pyramid scheme decision
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.
Following a second internal investigation, in January the Gaming Board ruled Lyoness was an illegal pyramid scheme.
As at the time of the decision, Lyoness was ordered to immediately cease operating in Norway by the end of March.
Lyoness responded to the ruling by filing paperwork with the Gaming Board regarding their change of company name to myWorld.
The Gaming Board in turn published an update, acknowledging receipt of the paperwork and their intent to go over it.
As silly as a company changing its name to avoid regulatory banning might sound, the announcement prompted Lyoness affiliates to claim the ban didn’t exist.
In an update published on June 4th, the Gaming Board announced despite Lyoness changing its name, the company is still an illegal pyramid scheme.
Examination of further material provided by Lyoness regarding its name-change appears to have concluded recently, after which the Gaming Board reaffirmed its decision.
On March 31, 2018, the Lottery Authority has ruled that Lyoness must cease all operations, participation in and extension of work in Norway as the work is an illegal pyramid-trading system.
Three key conclusions drawn leading to the decision include:
- Lyoness’ revenue in Norway is primarily derived from new affiliate investment, not shopping as is commonly claimed
- Lyoness affiliates invest in coupons, the company does not sell any goods or services that demonstrate value beyond participation in the investment scheme
- Lyoness does not accurately document revenue generated by the sale of goods and services
For their part Lyoness has failed to cease operating in Norway or inform their affiliates of the ban.
The decision is directed against myWorld Norway AS (former Lyoness Norway AS) and Lyoness Europe AG, but will also affect around 152 500 Norwegian participants and 1000 Norwegian loyalty companies included in the revenue system.
Lyoness has three weeks to respond to the Gaming Board’s decision.
Given they’ve already participated in the investigation and had a chance to respond to the initial decision, it’s unlikely anything short of a complete overhaul of the fraudulent business model will reverse the Gaming Board’s decision.
Update 13th February 2019 – On February 12th, 2019, the Norwegian Complaints Board announced it had rejected Lyoness’ second appeal.
As of January 26th, 2019, Lyoness has been permanently banned in Norway.
This is the best news and now other countries need to cite this ruling and ban Lyoness.
Hubert is an evil man with no soul for what he has done to innocent people conned by his scam.
ACCC take note, there are Australians filing complaints and it’s time to reopen the case against Lyoness.
Australia needs to boot Lyoness out and rule that they have to pay back every unit dollar except to the die hards that continue to scam people into investing money into the units. It’s not going to work.
As for the shopping, the card is hardly used because the Cashback isn’t worth taking your card out of your wallet.
surprisingly no lyoness denial prayers on forum this time…
One diehard tried to publish this with a bunch of marketing spam:
I just nuked it as spam. If you’re delusional to the extent you’re going to ignore official regulatory decisions there’s no point.
Cult-like indoctrination of their affiliates. They really are a lovely bunch.
Yes! So refer your local authorities to this decision. Especially EU countries could now easily take a same course of action.
Even though Norway is not EU, their legal framework is almost entirely based on interpretation of the EU unfair trade practices law.
I know that this blog do not seek logic as a goal.
BUT,
The Gaming and Foundation Authority its part of one branch of Ministry of Culture. ( I hope you know the kind of power they do NOT have)
(Ozedit: The Gaming Board has the power to shut down Lyoness in Norway, which they’ve done. Waffle removed.)
^^ Here comes a diehard now…
Myworld will appeal and will win again, just like every other country. Nothing wrong with the business model.
All complaints come from the uneducated or from the people who enter the business then quit, then want their money back.
That’s not how the real world works folks. Myworld is becoming a global powerhouse.
In the real world Ponzi schemes like Lyoness are illegal. Norway is just the first country where a regulator who has investigated Lyoness have actually done their job.
If the majority of company-wide revenue is coming from affiliate investment in Norway, the same is true for Lyoness elsewhere in the world.
And, of course, you have the evidence proving where all the complaints come from, don’t you ??
Didn’t think so.
we are certain that your marketing plan is too complex. it’s a well-assembled scheme. will be the only country to investigate the company?
There’s nothing really complex about the core of Lyoness investment scheme.
New money is invested and used to pay existing affiliates a ROI.
What Lyoness attach to that (retail shopping etc.) is complicated but ultimately irrelevant.
Can you please answer this question even if you do not like it:
Lets say that the shoppingpoints that generates the Units all came from real shopping and not 90% from “invested” money, would you still consider this as crap? Or maybe it is a good way to get profit from your networking!
It´s an honest question, please do not answer with “-what could work is irrelevenat…” or “we´re done here”!
If even 10% of newly invested funds were used to pay existing Lyoness affiliates, that’s still a security and without registration with regulators Lyoness would still be committing securities fraud.
In any event 90% of ROI payments are not paid using shopping funds so it’s a moot argument.
Norway’s investigation is based on evidence that proves the majority of ROI payments made to affiliates are sourced from funds invested by subsequently recruited Lyoness affiliates.
Your “what if” hypotheticals are irrelevant.
It is not irrelevant! Let´s say CBW will (Ozedit: Let’s not, see below.)
Lyoness has been committing investment fraud since 2003. If you wish to discuss “what if” hypotheticals do it elsewhere.
I’m only interested in facts, namely that Norway confirmed Lyoness is a Ponzi scheme.
The Norwegian Lottery Inspectorate released August 2 a document telling Lyoness own figures from 2017.
175,000 members but the number of cards used in 2017 is approximately 40,600 and then 17,000 marketers are included in these figures. Less than 1/3 of the customers were active in 2017.
In Sweden they boast how big they are in Norway, but given that every marketer has a total of 1.4 customers, it’s as pathetic as the company as a whole.
Thanks for the heads up! I’ll be keeping an eye out for the Complaints Board’s decision.
Hello guys, can ou update me about Lyoness in Norway? Because in website they still operate in there. So was not supposed to be over?
I’m from Portugal and they are trying to implement this in here, but i think this look like a scheme that anytime could be closed.
TY
They might be able to continue operating whilst they exhaust the appeals process.
I am a Finn. Was invited for individual recruitment event this Wednesday.
Speaker told: when buying from Ikea you present Casback card and Ikea shall pay 10% of your purchase value to myWorld who then shall pay 0,5% to your Cashback account…. guess did I believe or not…
So yesterday I asked from Ikea customer service of Cashback and all other brands, well as expected never heard of…. and they even promised to send answer to email which I am now waiting.
So I GOT A CASE TO SUE myWorld!!! They got it coming and they picked a wrong guy
Hey, Kate, just wondering, if you’ve been “conned” yourself. And if so, how much did you invest. I might be interested in acquiring your account and put it to good use, since you, obviously, have little understanding how Lyoness compensation plan works. )
The cashback, by the way, is not at all that small. If we take average of 2,5% and 2,5 SP (shopping points) per purchase, and assume a family can spend, for example, around 500 EUR for groceries, fuel and other products inside of Lyoness network, then this results in economy of 150 EUR per year in cash and at least 750 EUR in shopping points that you can use for discounts (as another example, take a trip somewhere in the end of the year).
And this all comes free for a regular Joe, so why not use it? Kate, you’re driving people into confusion here.
And once again a Lyoness affiliate tries to strawman the unit Ponzi scheme with cashback.
Offering cashback doesn’t justify Lyoness running a Ponzi scheme.
Worst case scenario happened: victims does not understand beeing screwd, because the Ponzi brainwash is so terrible. Instead, they keep believing anything mr Freidl says.
Have you negative people EVER listened to a presentation from someone who can truly explain the Myworld/Lyoness system???
(Ozedit: No need – Lyoness’ business model isn’t a secret: https://behindmlm.com/companies/lyoness/lyconet-review-unit-commissions-that-dont-add-up/ )
If you’re going to trot out the “but muh shopping!” justification, don’t.
The shopping is smoke and mirrors for Lyoness’ unit Ponzi scheme. This has been the case since day 1.
Just because you swallowed the marketing bullshit doesn’t mean everyone else will.
scammer meltdowns = always funny.
The Easter Bunny & Harry Potter 100% agree with you. Word is Santa Claus is joining & bringing a huge downline.
lol.
I have Craig Noone’s lawyer on the line, he vehemently denies your accusation that his client is involved in your “get out of the 9 to 5 slavery” Ponzi scam and says he’s focusing on the match against West Brom.
So you need to spend money to get your money back. And you call this a business?
Are people here really so stupid? 0 logic how the economy works?
Everyone in the world is spending money every month regardless if they want or not… how do most people go to work? With a car which needs to be fuelled or some other transport for which they need to pay. Do people eat stones? Or do they need to buy groceries? Do they need to pay bills for electricity etc… ?
Buying a discount voucher is not an investment because it’s redeemable. I buy them every month and i also REDEEM them all!!
So i have everything for free, because merchants are paying Now cashback + Recash from a discount voucher!
And because lyconet marketers bought a discount voucher, they get additional benefits with units etc…
So i got every month units for FREE or your called “investments”!
Its so easy, i feel sorry for all you haters 🙂
Don’t be sad when the company will hit over half billion members in 2030.
Major companies camed now. Walmart, Tesco, IHOP, google play, app store and itunes, Flixbus and so on and on… last year 80.000 companies, now over 120.000…
Lol, how many weeks have you been with Lyoness then?
Lyoness started buying giftcards and claiming partnerships years ago. After a few embarrassing public callouts I thought they’d stopped the practice.
Why bother with these articles, either way big companies are coming in and we have more and more biggest companies in the world and if they see potential and they do, then we are done chit chating.
As always, the one who comes to a presentation and do a research + tries how works…knows its legit. Have a nice day.
So Lyoness Ponzi scammers such as yourself have just that much of a harder time recruiting new investors.
gets scammed. Marketing is not a substitute for due-diligence.
I get a lot of you are new to Lyoness with the company having just migrated to your country but we’ve been tracking Lyoness for years.
Once recruitment dies in your country you’ll be victims too, just the same as all the other countries that have come before you.
myWorld/Lyconet still can’t let it go in Norway!
18. March 2021/. by Ben Ecker
Norway is one of the countries that have banned any Lyoness/Lyconet/myWorld/Cashback business since January 2018.
At the time, the Competition Authority of Norway, which is also the government’s complaints authority, took strict actions against it. But that still doesn’t stop the myWorld group from allegedly depriving even more members in Norway of their money….
READ MORE: bekm.us/myworld-lyconet-still-cant-let-it-go-in-norway/
SHAME on you Hubert!