Lyoness loses second Norway appeal, permanently banned nationwide
The Norwegian Gaming Board has rejected Lyoness’ second appeal, resulting in the Ponzi scheme being permanently banned in Norway.
The Gaming Board initially banned Lyoness in Norway back in January 2018.
The Gaming Board’s investigation found that the majority of revenue Lyoness generated in Norway was from direct unit investment, as opposed to cashback shopping.
Thus it followed commissions and unit returns were also primarily funded by new unit investment.
This is the Ponzi scheme baked into Lyoness that BehindMLM first warned consumers about back in 2012.
Lyoness’ first appeal to the Gaming Board’s decision was the usual “wutabout shopping???” song and dance.
Lyoness also submitted “new information” to the Gaming Board, regarding their company’s numerous name-changes.
You had Lyoness, which then split into Lyconet and Lyoness, which then became Lyconet and Cashback World, which I believe now is myWorld and Cashback World.
Fortunately the Gaming Board rejected both the cashback and “but we changed our name” arguments. Lyoness’ first appeal was denied by the Gaming Board in June 2018.
Lyoness filed a second appeal to the Complaints Board following the June decision.
The second appeal saw Lyoness argue that the Gaming Board’s decision was based on “procedural errors” and disproportionate to violations committed.
Lyoness demanded “the right to correct the illegal” nature of their business model.
Seeing as the Ponzi investment scheme has been central to Lyoness’ business model since day one, how they’d have gone about this is unclear (another company name-change?).
Yesterday on February 12th the Complaints Board announced it had rejected Lyoness’ second appeal.
The Gaming Authority’s decision on 31 May 2018 is not subject to procedural errors and is also not disproportionate.
The Lottery Board has made a thorough assessment of Lyoness’s business and the conclusion is clear.
The Lottery Board has not found reason to give Lyoness the right to correct the illegal relationship. Lyoness (Lyoness Europe AG and Lyoness Norway AS) will stop all business.
And so that’s that.
After confirming Lyoness is an illegal pyramid scheme twice, the company is now permanently prohibited from operating in Norway.