Pyramid selling: the Italian Competition Authority suspends One Life’s promotion of the OneCoin cryptocurrency
After extending the proceedings on the promotion of the OneCoin cryptocurrency to the companies One Life Network Ltd. and Easy Life S.r.l., the Italian Competition Authority (ICA) has ordered One Life to suspend its promotional activity, as a precautionary measure.
Easy Life S.r.l. has reported to have stopped the said promotional activity.
From the information obtained, these two companies are also believed to be involved in promoting the OneCoin cryptocurrency purchase and distribution programme and related training packages.
The ICA had indeed initiated proceedings to this regard against One Network Services Ltd. and three natural persons in their capacity as registrants of the promotional websites onecoinsuedtirol.it, onecoinitaliaofficial.it, onecoinitalia.com. (see press release of 30 December 2016) and ordered them to suspend the activities related to the promotion of this cryptocurrency. In fact, the most substantial portion of the revenue generated by the activities at issue appears to result not so much from the purchase of the OneCoin criptocurrency, but rather from the fees that consumers are required to pay to subscribe; in addition, to reach their earning target, subscribers seem to be required to recruit other consumers. These methods appear to be attributable to the typical dynamics of pyramid selling.
In gathering the evidence that led to extend the proceedings to the two aforesaid companies, the ICA benefited from the valuable collaboration of the Special Antitrust Unit of Guardia di Finanza.
Rome, 27 February 2017