World Ventures lose Norway appeal, still a pyramid scheme
The story so far:
May 2013 – Norwegian Gaming Board announces investigation into World Ventures. The company is suspected of operating a pyramid scheme.
Feb 2014 – Norwegian Gaming Board finds World Ventures to be a pyramid scheme.
The Gaming Board concludes that World Venture’s activities in Norway are an illegal pyramid game because revenues almost exclusively come from recruiting members and not the sale of travel residence.
An enforcement directive sees World Ventures immediately required to “stop all activity” in Norway.
In response, a World Ventures attorney told Nigerian media that the company
disputes the basis the ban is imposed on. The company looks forward through the legal process to a thorough and objective review of the basis on which the Gaming Board has made their decision.
It is our opinion that the Authority’s basis in both fact and law is untenable.
In light that an appeal is to be filed, the Gaming Board voluntarily suspends their enforcement action. This means World Ventures is free to operate after the filing of an appeal.
May 2014 – World Ventures files an appeal challenging the Gaming Board’s investigation.
In a press-release the company states
a number of the factual and legal aspects of the Gaming Board report (are) unfounded and associated with failure.
WorldVentures considers that there are no reasons for banning business.
November 2014 – Over the past five months or so Lotterinemnda, the government department in charge of overseeing and deciding on Gaming Board appeals, has been going over World Ventures appeal.
Supporting documents have been filed by World Ventures throughout September and October, but unfortunately they were filed under seal and are not publicly available.
After reviewing all the information provided to them however, Lotterinemnda advised World Ventures that they would make a decision no later than the 24th of November.
Late last week saw the 24th of November come and go, with Lotterinemnda’s decision being made available on their website late last week.
The verdict?
World Ventures’ appeal was denied.
Presumably this now means that the original enforcement directive that sees World Ventures effectively banned in Norway is put in place.
Effective immediately, this would prohibit the promotion of World Ventures in Norway. Affiliates who continue to promote the scheme run the risk of getting caught promoting an illegal pyramid scheme.
Hardly surprising when you consider the lack of retail and recruitment commissions paid out to World Ventures affiliates (see BehindMLM World Ventures review).
At the time of publication, and despite likely receiving notification of Lotterinemnda’s decision back on the 24th, World Ventures has yet to make a public statement regarding the decision.
Update 29th November 2014 – Norwegian media outlet Nettavisen is reporting that World Ventures have announced they plan to file for an injunction against the Gaming Board.
WorldVentures’ lawyer, Earl Juell Hassel, in Elden & Co., is not pleased with the decision. On behalf of his client, he is now taking legal action to stop the decision.
“Now we take out injunction and lawsuit against the state”, said Hassel.
Having undergone decision, it appears to the Hassel as clear that the opinions of the Gaming Board is partly built on incorrect facts and understanding of WorldVentures their business.
Good luck suing the Norwegian government guys. I’m sure that’ll work out well.
You could, y’know, just stop running a retail lacking recruitment-focused pyramid scheme… but hey. Far be it from me to tell you how to run your company.
It one thing to actually file the injunction and another to claim they are going to file an injunction.
It is going to be really interesting to see if they do in fact file the injunction. This may only be window dressing for the members to keep them in the fold.
The court fee for a preliminary injunction is 860 NOK ($130), so it’s an inexpensive solution in itself to delay the final decision.
The lawfirm may recommend it if it feel it has a valid case, or if the client insists he has a valid case (it’s often about that, “a client eager to fight for his self appointed rights to the bitter end”).
IIRC, it’s the second injunction. The first one delayed the decision for 2 or 3 months before it became “final”.
Can the appellate court reject their appeal? I am not sure how it is done in Norway, but in the U.S. the appellate court can deny the appeal if they cannot prove the lower court erred in their decision.
No matter what, this is going to be interesting to watch and see how it unfolds.
Great article. I don’t believe WorldVentures is a scam but their business practices and ethics can be very unprofessional.
Interesting to see what will happen in regards to this situation further and with the business being in other countries across the world.
I am always suspicious of MLM opportunities that rely on membership fees both annually and or monthly, I haven’t seen a travel agent outside of MLM that asks for fees before selling travel packages to consumers.
When commissions are paid from participation payments there is always a real chance that the authorities will prove that the scheme is contravenes a pyramid scheme.
I would like to see a true separation of fees from actual transactions for each country that World Ventures operates within, only then can it be determined if World Ventures is running a true travel business.
Oprah Winfrey did a four page spread in her magazines on World Ventures (Ozedit: Snip, she didn’t)
Pretty sure Disney wouldn’t support it (Ozedit: Snip, they don’t)
worldventures actually has a product and a service, how is that a pyramid scheme? If you don’t put in the effort to enroll members you do not get paid, how is that unfair?
Every modern day pyramid scheme has a product and/or service attached to recruitment.
Because if the majority of commissions are paid on recruitment, inevitably the largest percent of affiliates are going to be left holding the bag when recruitment dies down.
Not to mention the fraud committed when WorldVentures affiliates such as yourself insist the majority of commissions aren’t paid on recruitment.
WorldVentures is now recruiting unsuspecting South Africans.