The Federal Court, Perth has handed down orders by consent declaring that Kevin Ryan, a Perth participant in a scheme called Skybiz 2000 Home Based Business, breached the Trade Practices Act 1974 by promoting a pyramid selling scheme.
The Australian Competition and Consumer Commission instituted legal proceedings against Mr Ryan alleging he contravened the Act by attempting to induce others to become participants in the trading scheme, promoted by SkyBiz.com, Inc., and to pay Skybiz US$100 per web site in order to obtain the prospect of taking part in the scheme.
In settlement, Mr Ryan has consented to orders in which the court:
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declared that he attempted to induce persons to take part in a pyramid trading scheme called the Skybiz 2000 Home Based Business Scheme by representing to them that they would receive payments if they in turn introduced other persons into the pyramid scheme, in breach of the Act
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accepted his personal undertaking that he will not take part in, or induce or attempt to induce others to take part in the pyramid scheme
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ordered that he pay a contribution to the ACCC’s costs. "It is not only the ACCC that has a concern with participants in the Skybiz 2000 Home Based Business Scheme, other international agencies have similar concerns", ACCC Chairman, Professor Allan Fels, said today.
"The Federal Trade Commission, for example, has instituted proceedings in the US District Court alleging that Skybiz and related corporations and individuals have engaged in misleading and deceptive conduct and pyramid selling.
"The ACCC is widely acknowledged to have been vigorous in applying the Act to prevent or stop pyramid selling, even if the corporation behind the scheme is located overseas. "Last year, for example, the ACCC successfully obtained orders against Golden Sphere International Inc in the Supreme Court of Vanuatu.
"The ACCC was also successful in securing orders against the international AATM Card Scheme marketed and promoted by World Netsafe Pty Ltd and Terence Butler on the Internet World Wide Web and by email, which was found to be an illegal pyramid and referral selling scheme by the Federal Court in Brisbane.
"E-commerce is an emerging industry and the ACCC is determined that traders engaging in trade and commerce over the internet must comply with the Act. This matter serves as a warning to individuals who may be considering joining similar schemes that are promoted over the Internet".