• The President of UOKiK imposed a total of over PLN 24 million in fines on iGenius and International Markets Live.
• The allegations concern operating pyramid-type incentive schemes, which are prohibited by law, in which benefits depend primarily on recruiting new members rather than on the sale or consumption of products.
• Previously, the Competition Authority issued public warnings against both entities.

At first glance, pyramid-type incentive schemes resemble companies operating under a multi-level marketing (MLM) model, which – in principle – is legal. The difference is that in a legal MLM, profits come primarily from the sale of products, whereas in a pyramid-type scheme, the possibility of receiving financial benefits depends mainly on bringing new people into the system.

The proceedings conducted by UOKiK showed that this was precisely how two US-based companies – iGenius and International Markets Live – operated. Although these companies claim to engage in educational activities, their business model meets the legal definition of prohibited pyramid-type incentive schemes, in which participants are rewarded mainly for recruiting additional people rather than for selling products. These schemes are prohibited under Polish and EU law because they carry a high risk of financial losses for consumers. They require a constant inflow of new members and their payments, which is not sustainable in the long term. The system collapses, and consumers lose money. Consequently, the President of UOKiK, Tomasz Chróstny, imposed fines of over PLN 14.6 million on iGenius and nearly PLN 9.5 million on International Markets Live.

Modern pyramid schemes

Modern pyramid schemes rarely call themselves investment schemes outright. Their creators learn from the mistakes of their predecessors and operate more cleverly. At the beginning, they promise a quick path to financial freedom – for example, during online “live” sessions and subsequent training sessions – access to “secret” strategies, trading signals, investment bots, or training gurus. Of course, all this comes at a price. You have to buy your way into the “inner circle” – for example, pay PLN 500-1,500 upfront plus monthly fees for training and “unique tools”. The reality check comes later. The courses and knowledge in practice turn out to be of poor quality or are available online for a fraction of the price or even for free. The real emphasis is placed on recruitment and maintaining the appropriate distribution structure. The largest profits come not from acquired knowledge and investment skills, but from building the structure – inviting additional people to join the project. A steady stream of fees from participants – this is the money intended to finance bonuses for “leaders”. If you want to earn money, you have to bring in “new” members.

– Pyramid-type schemes take on a form that conceals their true nature. This is the case with both iGenius and International Markets Live. At first glance, it seems that their domain is educational services and access to knowledge. However, upon closer examination, it turns out that the pillars of the companies’ activities are affiliate programmes linked to their offer – says Tomasz Chróstny, President of UOKiK.

iGenius

A US-based company, iGenius offers online investment training through its platform, igeniusglobal.com. In exchange for a one-time fee ranging from just under USD 100 to around USD 1,500, online users receive monthly access to selected content. At the same time, they are encouraged to join an affiliate programme promoting the platform, in which, after paying a fixed subscription fee for access to the platform, they can receive compensation for recruiting new members. Many did this, for example, through intensive activities on their social media (which, according to the company, was contrary to the iGenius business model).

The core idea in the statements of iGenius promoters was that thanks to the platform, anyone could become a millionaire and change their life in the blink of an eye. The imagination of new members was supposed to be stimulated by photos flaunting wealth or accounts of exotic trips. This is distinctive of pyramid-type incentive schemes, which tempt members with attractive compensation for recruiting new members and building a sales structure – which was ultimately confirmed by the proceedings conducted by UOKiK.

In his decision against iGenius, the President of the Competition Authority ordered the company to cease the described practices and imposed a fine of PLN 14,668,589.

The decision is not final. The company may appeal it in court.

International Markets Live

International Markets Live (IML), which, like iGenius, is based in the US, owns the online platform im.academy (on 4 November 2024, it changed its name and web address to https://iyovia.com/). Through this platform, it sold digital products and educational services related to financial markets, cryptocurrencies, and e-commerce as part of monthly access to packages called academies.

In order to promote its business, IML ran an affiliate programme. To join it, at the time of registration, one had to accept the terms and conditions set out in the Independent Business Owner (IBO) agreement, pay an initial fee, and make monthly payments of the same amount. IBOs received commissions based on effective sales of IML products and services made personally or through partners they recruited into the sales structure.

The proceedings conducted by UOKiK showed that the benefits of participating in the programme depended primarily on recruiting new members, which indicates that the company operated a pyramid-type incentive scheme. Therefore, the President of the Competition Authority imposed a fine of PLN 9,483,604 on International Markets Live, while also noting that the company ceased the prohibited practice on 23 May 2025 (the decision is final).

As with iGenius, the President of UOKiK had previously issued a consumer alert against International Markets Live and notified law enforcement authorities.

Keeping an eye on pyramid schemes

The decisions regarding International Markets Live and iGenius are further actions taken by the President of UOKiK concerning pyramid-type incentive schemes. Previously, in these and similar cases, consumer alerts were issued. Proceedings are pending against the platforms BE Poland and GrowUp Session, and preliminary investigations have been launched into the organisers of the Eaconomy and Jifu projects. However, the President of the Competition Authority is looking not only into pyramid-type incentive schemes themselves but also the people who promote them. He is conducting six proceedings against promoters of iGenius and three against promoters of International Markets Live.

– It might seem that pyramid-type incentive projects are a relic of the 1990s, but their modern versions have gained new life on the internet. They have taken on masks of modernity, professionalism, and prestige. Instead of promises of miraculous investments, they promote access to trading tools, artificial intelligence algorithms, investment training, e-commerce courses, and educational packages. In addition, contemporary “business pharaohs” skilfully use social media and influencers who show off their supposedly luxurious lives on their channels. That is why we regularly track, expose, and eliminate such activities. However, beware! Nothing can replace consumer vigilance and common sense – emphasises the President of the Competition Authority, Tomasz Chróstny.

Consumers! Don’t be pyramid builders!

In Poland, it is forbidden not only to establish and operate a pyramid-type incentive scheme but also to promote it.

1. Do not blindly trust creators that their business model is legal. Before you start marketing activities, verify the project yourself.
2. Check whether the entity appears on the warning lists of UOKiK, the Financial Ombudsman, and the Polish Financial Supervision Authority.
3. Even if the entity is not on any of the warning lists, do not let your guard down. Dishonest entrepreneurs act quickly, change names, or create new companies.
4. Ask probing questions. If someone says that “negative thinking blocks success”, run away.
5. Analyse what you are paying for. If the main value is “educational” content, assess whether it actually makes sense and is worth the price.
6. Avoid offers where earnings depend on recruitment.
7. Use common sense! Do not believe in quick, easy profit. Photos on Instagram are not proof of success and wealth.