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12/07/2013

FAQ #1: Is Lyoness a scam?



Question: is Lyoness a scam?


Short answer: Yes.


Long answer:


While it is perfectly fine to refer to Lyoness as a scam, a more thorough look at this 'company' will show that Lyoness is a complicated, comprehensive labyrinth of a large number of different scams, combined by the common denominator of Lyoness' disguise of a 'mutually-beneficent shopping community', promoted with truly cultic methods of mass-deception.

Lyoness operates a classic pyramid scheme which it has dissimulated as a 'position system' in which 'accounting units' are saved up by collecting discounts from shopping at the Lyoness 'loyalty merchants'. However, in practice, these 'accounting units' are bought by the Lyoness members (which they are persuaded and pressured to do), which get rewarded if they bring in new Lyoness members that purchase 'accounting units' through a flat bonus entitled 'volume commission', as well as a monthly commission based on the number of people brought in and the positions they acquired; and a future multiplication of the value of the position if enough people are brought in and positions are bought by these people. Both consumers and small and medium-sized enterprises are enrolled into this system.

Additionally, Lyoness members have been persuaded by their recruiters and the Lyoness instigators to invest in positions in (newly-opening) other countries (to benefit from the expansion of the racket in these newly-opening countries and the consequential position purchases in these countries), as well as option trading schemes related to the expansion in these countries. The latter schemes are classic Ponzi schemes, in which members are not rewarded for bringing in new victims, but are (usually unwittingly) just paid commission out of the investments of new investors. The same applies to the advertising campaigns in newly-opening countries in which Lyoness has asked its members to invest. For both these series of Ponzi schemes, obviously no investment prospectus was issued. This is why the Viennese Commercial Court has decided on several occasions that Lyoness should refund its investors into these schemes.

These are the major scams perpetrated by the Lyoness racketeers. Additionally, hugely overpriced tickets to mass-deception events and motivational materials seem to have been peddled to the Lyoness members lower ranked in the organisation. Surrounding the Lyoness racket, others have seen their chance to catch some of the scamming splash too (for instance by selling worthless leads generating systems).

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The Lyoness FAQ (Frequently Asked Questions) section was designed to provide the general public with answers to the common questions about Lyoness they may struggle with. The section will also provide yet another way to structure the content of this Blog - and direct the searches of people interested in our content to exactly the information they seek.

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