Sonntag, 10. Oktober 2010

TSC2000 Europe Ltd - AUSTRALIA: MLM LOTTERIES ARE ILLEGAL

A PYRAMID scheme operating in the Territory has been shut down.

The scheme promises its members shares in lottery wins, and bonuses for signing up new members.

TSC2000 Europe Ltd has agreed to orders made by the Northern Territory Supreme Court to not advertise to Territorians or accept new registrations from Territory addresses for its OzPower System.

TSC made no admissions to the court after Territory Commissioner of Consumer Affairs, Gary Clements, started the legal proceedings in an attempt to stop the scheme.

Because the case did not proceed to a trial, the court did not have to judge whether the scheme was legal or not.

The company agreed to "prominently display" a notice on its website that says Territorians may not become members, and send all Territory members an email explaining the court action and undertakings the company gave to the court.

TSC will also have to accept any membership cancellations without charging any of the usual fees.

It is allowed to continue to operate its website, but is not allowed to advertise specifically to Territorians.

If the company breaches any of its undertakings, it could be prosecuted for being in contempt of court.

Mr Clements said the agreement was the first of its kind made in the NT.

"Illegal pyramid selling schemes are always of concern to Consumer Affairs authorities because the benefits they promise to members are unsustainable," he said.

"Often the pyramid fails and many people lose money."

Mr Clements said he would "not hesitate" in taking further legal action against TSC if he found out members of the scheme were still active in the NT.

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