AGCM

PRESS RELEASE

ANTITRUST AUTHORITY INTERVENTION AGAINST PYRAMID SALES

Stop to the spreading of systems not aimed at the marketing of goods or services, in the fulfilment of economic benefits through the mere recruitment of other individuals in the pyramid system.

The Antitrust Authority, even on the basis of a report received by Consob, has ascertained that the advertisements released by Mr Daniele Verzari Boaglio, through his website www.vdproject.info, was meant to promote investment schemes whose economic benefit for members was primarily related to the gradual expansion of the base of the subjects recruited and not bound from performing any actual business of selling goods or services, according to the pyramid schemes.

In this context, the Authority has also verified the misleading message that contained a misleading prospect of easy money, omitting to inform the consumers of the fact that the gains envisaged could be achieved only if a large number of subjects had joined the system, and that there was in contrast a high risk that the ‘chain’ is interrupted and that, therefore, the new members could not achieve a real economic benefit.

The Italian Competition Authority has imposed a fine of EUR 100 000 on Mr Verzari Boaglio, warning him from continuing this conduct.

The Antitrust Authority will continue to carefully monitor the spreading of promotional communication through the internet which, through the deceitful prospect of easy and immediate profits, in reality exclusively aims to bring more consumers within a pyramid system.

Rome 3 November 2014