lyoness cashback card/scam?

reeceydee

Hi,

Just happened to stumble upon this thread on google. I have also recently been approached very recently and asked to buy into lyoness. Would love to know the craic behind it.

The last time someone approached me with an idea like this it turned out to be Amway.... Is this something similar?

Fruit_and_Nut_Case

reeceydee wrote: »

...Amway...

:rotfl:..........

hatespyramids

Lyoness, or Easy Money

By Clement Bürge - Posted on 15.02.2012 at 11:35

Lyoness, a community of buyers in 23 countries, is developing in western Switzerland. Crooks or benefactors? The company stirs controversy.

"Are you interested in earning thousands of francs? Join Lyoness." announces *Angelo, with an assured voice and a charming smile. The handful of onlookers, gathered at a hotel in La Chaux-de-Fonds, listens to this modern-day prophet open-mouthed. Armed with a polished PowerPoint, this thirty-something presenter gives the recipe for his miracle solution: join the Lyoness community of buyers. Native to Austria, the company claims to have attracted two million people in twenty-three countries, including 12,000 in Switzerland. It promises its members to get discounts, to recover money on their purchases, or to even earn tens of thousands of francs in cash.

Members can choose: to make money slowly, quickly hit a jackpot, or both. The first method is to acquire a membership card that Lyoness says is free. In reality, it is obtained against the purchase of CHF 450 of gift vouchers in partner companies and offers 1% to 6% discounts from these brands. In this network, which is poorly developed in Western Switzerland, there are small traders, such as service stations Jubin in Jura or Boky, a Chinese restaurant in Lausanne.

A robust approach is applied to converting people into business partners. By investing 3,000 francs in the company, members can withdraw 25,000, provided in turn they recruit a number of investors. That February night in La Chaux-de-Fonds, we will not know exactly how many, such is the apparent complexity of setting up the system. Presented in diagrams, Angelo is excited about the system’s miraculous formula. "It's very complicated," says Josiane*, a lady in her sixties. "No need to understand, it works by itself," interjects an associate of Angelo. "It's fantastic", she says finally. Too fantastic.

Complaints of fraud are springing up everywhere, including in France, Austria and Switzerland. "Very often, people get a few hundred francs, but never more, said Eric Breiteneder, an Austrian lawyer in charge of more than 50 cases related to Lyoness. To our knowledge, nobody has got the famous 25,000 francs."

The problems go back to the heart of the system. "The return of money from the entry of new investors reflects the principle of the Airplane Game," said Fabien Rouiller, a lawyer in the The Commission on Lotteries (Comlot). Also called a Ponzi scheme or pyramid selling, the system is based on the fact that profits are derived from recruiting new members, and not a sale. As long as new members are available, it works. Once the resources are exhausted, everything collapses, leaving those at the top of the pyramid with the most money.

How has the company survived until today? "The law explicitly prohibits this system”, explains Yannick Buttet from the commercial enforcement authority in Valais. “But in addition to the Airplane Game, Lyoness can get discounts. The combination of the two confuses the issue. We are in the grey area. It's very clever." The Austrian Eric Breiteneder agrees: "To launch a trial is often more expensive than the amount invested, hence the longevity of Lyoness (founded in 2003, ed.)"

The damage being caused by Lyoness exceeds the monetary losses, tearing apart families and friendships. "The group works on sponsorship”, attests Anne-Val!rie Pinet, a French lawyer who represents the first complainant. “Members are trained by relatives, who are not wary of anything. But once the scam is revealed, the links break." From the outset of the proceedings, the lawyer and his client were subject to threats from the victim's relatives.

Emotion is intensified because of the close relationships that are integral to Lyoness. "These people are fanatics or religious," says Eric Breiteneder. Rituals, a dress code to follow – wearing badges is obligatory - Lyoness regularly organises international meetings. "It sounds like a great mass," said the lawyer. Dance, song, it is a moment for worship. The founder and CEO of Lyoness, the Austrian Hubert Freidl, also engages in the show. Always present in the company's communications, the balding orator is the subject of boundless admiration. "This is our benefactor," said Angelo. Little information is known about the guru. His two partners, Tzvetan Streif and Hubert Wagner, come across as experts in casino games and chance. The three chair the mysterious Lyoness Child and Family Foundation. "This foundation is used to move money from one country to another. But nobody really knows where his money comes from and where it goes," said Eric Breiteneder.

The international headquarters of the company is based in Buchs (SG) "for tax reasons," according to Angelo. But Eric Breiteneder emphasizes its other function: "All contracts of overseas members are signed with the Swiss entity. Swiss members sign a contract with the Austrian group. The reason: they seek to complicate legislative procedures in the event of a trial. "A Swiss firm has received a complaint from former employees of the firm who would have had access to documents proving the fraudulent activities of Lyoness." Today, the law does not allow the Swiss authorities to actively fight against the company. But the State Secretariat for Economic Affairs [SECO] will soon be able to get involved," says Fabien Rouiller of Comlot. From 1st April, the change in competition law will provide SECO with new legal powers, which will finally allow it to seize the files. When contacted by L'Hebdo, SECO said it could not rule before the new law comes into force. But the lawyer in charge of the Swiss case revealed: "Lyoness is frightened, and is seeking to move its headquarters to Luxembourg before the deadline." Lyoness was contacted several times at its bases in Switzerland and Austria, but refused to respond to our questions.

* Names have been changed.

SnowTiger

Winter12 wrote: »

No. It's far better than that.
(It turns out to be a lot more than 6% at the end; I personally have ticked a box to receive 0 instant cashback - it will add it to loyalty bonus - which is so much better)
At the end, Lyoness easily destroys the 15%, 20% discounts given elsewhere.

I could go into detail how exactly does it work, but judging from your tone you are likely to shove your fingers into your ears and go "SCAAAM PYRAMID" etc.

No, no, no. £180 of PC World discount vouchers for, say, 75% of their face value sounds quite reasonable and would be worth faffing around for.

Where do I get them? That would be https://www.???

Of course this is where you tell me I have to contact a member of the non-scam Lyoness non-pyramid, go to a Lyoness seminar, join up myself and persuade all my friends and family members to do the same.

I'll look out for those TV adverts and keep hoping a member of staff at PC World, Asda, Morrisons or Boots will slip me a Lyoness card. :rotfl:

SnowTiger

Winter12 wrote: »

That would be www lyoness net /gb
After registering the first time, you get your personal ID number and set password.


next time you need vouchers:
1. login
2. buy

(3. observe the numbers in cash account grow. 4. enjoy)

Yep, been to the website. Can't see anywhere to sign up. But I do see lots of promises of savings, hidden away behind login screens.

If Lyoness was a great money saving scheme I would expect to see a big SIGN UP HERE button on their home page along with details of savings prominantely displayed.

A few of the great savings have found their way in to the wild.

http://www.lyoness.net/internal/gb/stores/en-GB/449000021-Penguin-UK:

Cashback Info
Cashback = 2.00%
Direct friendship bonus = 0.50%
Indirect friendship bonus = 0.50%

TopCashBack: 12.12% Cashback

And Dell, http://www.lyoness.net/internal/gb/stores/en-GB/449000093-Dell-DHS:

Cashback Info
Cashback = 2.00%
Direct friendship bonus = 0.50%
Indirect friendship bonus = 0.50%

TopCashBack: 5.05% - 9.09% cashback.

I don't understand why Lyoness is so cagey about savings and make it difficult to sign up.

dealer_wins

imo LYONESS is one big pyramid scam and should be AVOIDED.

Its the classic "whip em up into a frenzy" seminar that so many other scams use/have used in the past.