• UOKIK has been taking up enhanced actions aimed at elimination of some alternative investment projects available online.
• The pyramid-like incentive schemes promise their participants some benefits which first and foremost are dependent on the introduction of subsequent persons into the system.
• UOKIK has been investigating whether platforms such as: iGenius, Dream Trips and Jifu had violated consumer collective interests.

The monitoring carried out by UOKIK as well as signals from the market prove some extensive activities of unfair entrepreneurs who offer Internauts a capacity to earn money by way of participation is some risky investment projects. They comprise a wide range of issues attractive for consumers, such as investments, health, fitness, education or travelling. In a number of cases, authors of those systems amaze with wealth and luxury on the Internet trying to enroll, for the projects, the persons who are young or have no stable life standing, tempting them with a vision of prompt and significant gains. UOKIK has been actively monitoring the market in terms of presence of illegal pyramid-like incentive schemes and performs actions aimed at elimination of those market practices.

- The pyramid-type incentive schemes make appearances of earning high gains available exclusively for “the ones in the secret”. Such schemes must collapse after a while as the money paid in go only to their organisers and persons at senior positions
in the hierarchy of the pyramid. In such a system, there exists no product or service whose sales would generate added value and earned actual profits. We appeal to consumers to be skeptical about such investment offers - says Tomasz Chróstny, President of UOKiK.

Pyramid-type incentive schemes are frequently hidden under the slogans “program”, “investments”, “making money on the Internet”, “work from home”, “advertising platform” or “club”. As a smokescreen, they offer investments in tokens, crypto currencies, educational packages, apartments or tourist services.  Consumers are encouraged to join projects which appear to be a limited offer - only for the chosen individuals. No matter what the excuse is, a “common denominator” for such systems is the induction to recruit new members, build the structure and a promise of gains. Gains originate from new participants, however, after a certain period of time the scheme collapses since the money that you pay in are not invested in any assets.

Following the signals from consumers, among others, President of UOKiK has been conducting preliminary investigation on the following Internet platforms: iGenius - offering educational services in finance management and Dream Trips (formerly: WorldVentures) - inducing consumers to join a travelers’ club.

Additionally, President of UOKIK has been investigating into Jifu project which makes available, among others, a tourist services search engine and offers commissions for introducing subsequent persons to the project in exchange for a monthly subscription. The platforms: iGenius, Dream Trips and Jifu may potentially constitute the pyramid-like incentive schemes where earning depends on the capacity to land new members for the distribution structure.

What is more, President of the Competition Authority has pressed charges to the promoters of investment projects: Grzegorz Baryła, Franciszek Rumak and Łukasz Spórna who have been charged with promoting IM.Academy project pretending to sell educational packages from finance and e-commerce field. This entity has been known to UOKIK because of the proceedings conducted since July 2022 on establishing and promoting a pyramid-like incentive scheme.  In the case of IM.Academy, President of UOKiK has decided to apply an extraordinary tool protecting potential injured parties and in July 2022 he issued a consumer warning whose legitimacy has been confirmed by the Court of Competition and Consumer Protection. President of UOKiK uses a capacity to issue such a warning if he finds a justified suspicion that a specific entrepreneur has applied practices violating collective consumer interests which may result in significant losses or some adverse consequences for a wide range of consumers. More details on the other 18 consumer warnings issued by President of UOKIK can be found at: https://uokik.gov.pl/ostrzezenia_konsumenckie.php.

UOKIK has been continuously monitoring the financial investment market paying special attention to the occurring proposals of risk-free, high gains. Pyramid-like incentive schemes should be differentiated from the so-called pyramid schemes which are a fraud and if we suspect that we might have encountered it, we should notify the Police or the Public Prosecutor’s Office. For setting up, operating or promoting pyramid-like incentive schemes the entrepreneur is subject to a fine in the amount of up to 10 percent of the turnover while its managers are at risk of a fine of maximum PLN 2 million.

The examples of recent actions taken up by President of UOKIK pertaining to those unfair practices are the fines for the following companies: Wisepro Foctral and Vital Trading as well as two managers.

Consumers, please remember:

Before you decide to invest your savings, check the entity offering it at the websites of the following: UOKIK, the Financial Ombudsman and the Polish Financial Supervision Authority. Pay attention to a list of public warnings against potentially dangerous forms of investing.

Consumer Support:

Phone: +48 801 440 220 or +48 22 290 89 16 – consumer helpline
E-mail: [SCODE]cG9yYWR5QGRsYWtvbnN1bWVudG93LnBs[ECODE]
Consumer advocates – in your town or district

Additional information for the media:

UOKiK Press Office
pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone: 22 55 60 246
Email: [SCODE]Yml1cm9wcmFzb3dlQHVva2lrLmdvdi5wbA==[ECODE]
Twitter: @UOKiKgovPL
You can also follow us on Instagram: @uokikgovpl