Lyoness @ BehindMLM

Last Friday saw the conclusion of a five day trial which saw Lyoness defend pyramid scheme allegations, brought about by the Australian Competition and Consumer Commission (ACCC). At the conclusion of the trial Justice Flick reserved judgement. And while I had hoped we might see a judgement handed down this week or the next, it’s been [Continue reading…]

Lyoness’ Wikipedia entry was created on November 18th, 2009. It read: Lyoness is an independent international shopping community, linked by a single country- and sector-spanning customer card that enables Lyoness customers to get their “money back with every purchase” benefit. Hubert Freidl took up this inspired business idea, and many business partners soon joined him. [Continue reading…]

In late August 2014, almost a year ago now, the Australian Competition and Consumer Commission sued Lyoness for being a pyramid scheme. To date updates on the progress of the case have been scarce, so today we’re taking a look at where things are currently at.

For some months now an alleged business relationship between Lyoness and Mastercard has been used as a major marketing point by Lyoness and their affiliates. As with most third-party brand promotions, the idea is to create the illusion of legitimacy through association with an otherwise reputable company. In the case of Lyoness, they don’t want [Continue reading…]

I first took a peek at Lyconet earlier this year back in February. Launched in response to ongoing criticism of Lyoness’ accounting unit investment scheme, the purpose behind Lyconet was to completely separate the affiliate side of the business from that of the MLM opportunity. Unfortunately nothing much has materialized on Lyconet since my first look [Continue reading…]

Back in August we reported that the Australian Competition and Consumer Commission (ACCC) had filed a lawsuit against Lyoness. As with our own Lyoness review, a press-release from the ACCC indicated that they had taken issue with Lyoness’ accounting unit investment scheme. Today we take a closer look at particulars of the ACCC’s case.

Back in June the Norwegian Gaming Board announced they’d finished their investigation into Lyoness. Somewhat surprisingly, the Gaming Board decreed that Lyoness ‘does not engage in illegal activities in Norway.‘ The initial announcement was just that, with a detailed report to be forthcoming. In the meantime statements made by Gaming Board staff suggested the investigation [Continue reading…]

On the eve of the ACCC’s lawsuit against Lyoness being heard in court, ABC News Australia have interviewed some of the affiliates who’ve lost money in the scheme. Unfulfilled promises, unrealistic AU maturity projections and using well-known merchant names to lure new AU investors in is apparently all in a days work for those sitting [Continue reading…]

There are two ways to analyse Lyoness. You can either look at the giftcard and cashback of the business, totally ignore the Accounting Unit investment scheme and thus conclude Lyoness is about shopping… Or you can follow the flow of money through the company, and realize that most of the commissions paid out are a [Continue reading…]

Following on the heels of earlier news today that the ACCC regulatory body in Australia are suing Lyoness for being a pyramid scheme, comes a response from the company. Hollow rhetoric and colossal amounts of waffling? Youbetcha!