PS11517 - ICA: sanction of 3 million euros for myWorld Italia and Lyconet Italia
According to the Authority, the sales system of the two companies is misleading and lacks transparency, whilst also presenting components of pyramid-type sales systems
Autorità Garante della Concorrenza e del Mercato has closedan investigation against myWorld Italia S.r.l. and Lyconet Italia S.r.l. finding unfair the multi-level sales system promoted and managed by the two companies. For this reason, a total fine of 3 million euros was imposed on them.
According to the Authority, the sales system of myWorld Italia and Lyconet Italia, in addition to being promoted in a misleading manner which lacks transparency, possesses the characteristics of pyramidal sales systems, thus infringing articles 20, 21, 22 and part of article 23 of the Consumer Code.
The investigation carried out by the Antitrust authority made it possible to confirm that the promotion scheme adopted by the two companies is only formally aimed at the dissemination of a cashback service (which allows the return of a percentage of the money spent at affiliated merchants). In actual fact, it is aimed at recruiting an ever-growing number of appointees, who are promised a substantial financial return, thanks to various career paths which require the payment of quite significant amounts to purchase specific Lyconet Program products and services, all with the main aim of generating Shopping Points, which are needed to achieve and maintain the levels set out in the compensation plan.
Rome, 25 January 2021