• Omega, Hybrid Cykler, Alternet & AdBlast, Team-Coin - watch out for them as these can be 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.

We suspect that other dishonest companies could establish pyramid schemes and wangle money out of their clients under the pretext of making profits by watching commercials. Our 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:

1. Alternet from the United States – it 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.
2. Nautilius Investment from the United Arab Emirates – it 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.
3. M&K Promoteam from the United States – it 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.
4. M&K Promotim from Great Britain and M&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.

Consumers should act with due caution when someone:

• promises large profits in a short time,
• describes the way he/she operates rather vaguely and in general terms or explains that he/she has just started his/her activity,
• avoids answering their specific questions,
• uses lofty words and phrases such as: “become a partner”, “change your life”, “make money with no effort” etc.,
• offers them coupons, investment packages, participation certificates,
• refers them to a website that does not contain much information or is “under construction”,
• refers them to a website that does not in the Polish language, and the company is registered in an exotic country,
• points out that persuading other people to participate in the scheme is an essential, if not a sine qua non, condition for receiving remuneration,
• does not reveal sources of the scheme financing or presents them very generally.

Report the scheme to law enforcement agencies (police, prosecutor’s office).

Additional information for the media:

The UOKiK Press Office

Pl. Powstańców Warszawy 1, 00-950 Warsaw
Phone: 22 55 60 246
E-mail: biuroprasowe@uokik.gov.pl
Twitter: @UOKiKgovPL