Office of Competition and Consumer Protection (UOKiK) head Tomasz Chróstny imposed a fine of more than PLN 14,600,000 on iGenius and nearly PLN 9,500,000 on International Markets Live, the regulator said. Both companies present themselves as education providers but in fact run prohibited pyramid schemes, it added.
UOKiK said the business models met the legal definition of pyramid schemes, in which participants are rewarded mainly for recruiting new members rather than for selling products. Such systems are banned under Polish and European Union law due to the high risk of financial losses for consumers.
The decision against iGenius is not final and can be appealed to court. According to UOKiK, the company offers online investment training through a web platform, charging a one-off fee ranging from about USD 100 to around USD 1,500 for monthly access to selected content. Users are simultaneously encouraged to join an affiliate programme that requires a recurring subscription fee and offers remuneration for recruiting new members.
UOKiK said promotional messaging by iGenius affiliates was dominated by claims that anyone could become a millionaire and rapidly transform their life, often accompanied by images of luxury lifestyles and exotic travel. Such narratives are characteristic of pyramid schemes, the regulator said, adding that its investigation confirmed this model in practice.
The decision against International Markets Live, now operating under the name Iyovia, is final, UOKiK said. The company ceased the prohibited practice on May 23. Previously, it sold online access to digital products and educational services related to financial markets, cryptocurrencies and e-commerce via monthly subscription packages described as academies.
To promote its business, the firm ran a partner programme requiring participants to sign an Independent Business Owner agreement, pay an initial fee and make recurring monthly payments. Commissions were formally linked to sales, but UOKiK said its investigation showed that benefits depended primarily on recruiting new members, indicating a pyramid-style structure.
Pyramid schemes are often perceived as a relic of the 1990s, but have gained new momentum online by adopting the appearance of modern, professional and prestigious ventures, Chróstny said in a statement. He warned that promises linked to trading tools, artificial intelligence algorithms and investment training frequently replace earlier claims of easy riches.
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Source: PAP