OneCoin promotion prohibited by injunction in Italy
Earlier this month the Italian Antitrust and Consumer Protection Authority (AGCM) had issued cease and desists against local OneCoin affiliates.
Yesterday the AGCM issued an interim injunction against One Network Services, effectively banning the promotion of OneCoin in Italy.
Following a request for information from Italian OneCoin affiliates, along with information received from the Italian Securities and Exchange Commission and the Consumer Protection Center, AGCM has initiated a preliminary investigation into OneCoin.
AGCM claim the injunction is a “precautionary measure” to ‘limit the damage to consumers pending the conclusion of the investigation‘.
OneCoin in Italy is promoted as an investment scheme returning €2800 EUR on a €140 EUR investment after two years.
Three Italian OneCoin websites have been targeted as a result of the injunction; onecoinsuedtirol.it, onecoinitaliaofficial.it and onecoinitalia.com.
OneCoin Suedtirol is disabled, the OneCoin Italia Official domain is parked and OneCoin Italia has been taken offline.
According to AGCM;
the evidence gathered so far shows that the representation of the advantages in OneCoin, as well as being extremely random, are designed to attract and sign up a large number of consumers, who are required to provide significant economic investment.
This resembles a pyramid sales system which is prohibited by law.
When local OneCoin affiliates were questioned about the company’s business model, none of them were able to provide a legitimate explanation for the two year ROI or why OneCoin isn’t a pyramid scheme.
AGCM have not provided a timeline as to when they expect to conclude their investigation.