Polish watchdog: Omega, Hybrid Cykler, Alternet and AdBlast and Team-Coin can be pyramid schemes
Topics: OMEGA HYBRID CYKLER ALTERNET ADBLAST TEAM-COIN PYRAMID SCHEMES
The President of UOKiK has levelled a number of charges against companies that rely on individuals convincing other people to join up and part with their money.
The fine for promoting pyramid schemes amounts up to 10% of an enterprise’s turnover.
UOKiK suspects that other dishonest companies could establish pyramid schemes and wangle money out of their clients under the pretext of making profits by watching commercials.
UOKiK's proceedings have already been instituted but consumers should be alerted not to transfer their money hastily. There is a high risk that it can be lost, says Marek Niechciał, the President of the Office of Competition and Consumer Protection.
The Office has levelled a number of charges of promoting pyramid schemes against the following companies:
Alternet from the United States promotes the scheme on the Alternet portal and the AdBlast platform. Consumers may purchase participation packages worth from USD 10 to EUR 1000, and the alleged additional income and profits are to be paid out when clients persuade other people to participate.
Nautilius Investment from the United Arab Emirates promotes the Omega scheme. Participation packages cost from EUR 50 to EUR 200,000. The company accepts payments from consumers and promises them benefits for persuading other people to buy participation packages.
M and K Promoteam from the United States promotes the Team-Coin scheme. Consumers use bitcoins to pay for items for later withdrawal: one item costs 0.005 bitcoin (approx. PLN 220). Clients may purchase up to 30 items. The company promises benefits for persuading others to join up and the more items people buy, the higher their profit.
M and K Promotim from Great Britain and M and K Promoteam from the United States the companies have developed the Hybrid Cykler system. Participants may buy items for later withdrawal: one such item costs from PLN 20 to PLN 2,000 daily. The companies promise to pay those who persuade others to join the scheme. ■