NSW publicly lists Liberty League as a pyramid scam
Despite months of telling you it wasn’t a pyramid scheme, telling you to trust the EMC marketing committee, lying to your faces and declaring bloggers like myself to be posting “unconfirmed information and opinions” (Tony Rush)…,
Today the NSW government finally went officially public with its findings:
Fair Trading Minister Virginia Judge is alerting consumers to avoid pyramid schemes following investigations into a get rich quick scheme.
Ms Judge said the promotional material of a marketing scheme known as Liberty League may potentially breach the Fair Trading Act.
Ms Judge said Liberty League is an American based company that markets lifestyle coaching products and is being monitored for any evidence that it is active in NSW.
“Ultimately it is for a court to determine if Liberty League is a pyramid selling scheme,” Ms Judge said.
“However, consumers should be wary and if they have any concerns about the company’s activities they should contact Fair Trading immediately on 13 32 20.
“While pyramid selling schemes can often be very seductive they are designed to fail because they need an endless flow of new recruits to remain viable.
“My message to consumers is: avoid pyramid selling schemes at all costs because if it sounds too good to be true, it usually is.”
Ms Judge said pyramid schemes were an illegal form of multi-level marketing where participants receive benefits by recruiting other participants to invest money.
“The money paid by new recruits enriches those who joined the scheme earlier and are closer to the top of the pyramid,” she said.
“Some pyramid schemes involve the sale of goods or services (usually of token value) while the more blatant schemes involve the investment of money only. These schemes often claim to be games, investment clubs or self-help schemes.
“Section 60U of the Fair Trading Act states very clearly that a person must not participate in a pyramid selling scheme or induce another person to join one.
“The maximum penalty for breaking this law is $22,000 for individuals and $110,000 for corporations.”
Ms Judge said Fair Trading had notified other Australian consumer protection agencies about Liberty League so they could monitor the situation.
“Consumers who have had any dealings with Liberty League should contact Fair Trading on 13 32 20,” she said.
Everything the media release states was released by me in my analysis of the company in my various postings.
Most notably see:
Through diligence, education and public awareness of the Liberty League scam I feel we can now put this issue to rest once for all.
The battle to get these scammers out of our country is far from over though.
As you’re well aware Liberty League are going to start trading as Polaris Media Group from the 9th September, 2009. Currently I am in communications with the NSW office of fair trading attempting to clarify whether or not the Liberty League decision carries over to the new business.
Today I was abruptly advised that the person I have been communicating with in fair trading has been told not to comment further on the matter of Polaris Media Group.
When told I wished to speak to someone who could comment on the matter the representitive told me that my complaint has been escalated and passed on to someone higher. Presumably there are legal issues that need to be navigated in determining whether or not the finding carries over.
Rest assured I’ll continue to press for answers and a concrete statement from fair trading. You can count on me to post my findings as the information is made available to me.
For two years the founders of the newly formed Polaris Media Group have scammed the Australian public as Liberty League, it ends now.