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.
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.