Entries by Ben Ecker

Lyoness and the vouchers! Legally and financially innocuous?

All loyalty programmes (e.g. Miles&More) have to make financial provisions for non-monetary benefits like collected points or frequent flyer miles, as consumers can decide to redeem them at any point. As an example, Lufthansa has to set up millions on its balance sheet for its high-status miles-club members’ non-expiring frequent flyer miles. Depending on the […]

Court of appeal’s final judgement – Significance

The court has made a very clear final decision in the case (case file 31 C 651/16z 11) which will surely apply to all damaged parties: They acted as consumers and never stood a chance of obtaining the advantages promised without recruiting new members. The court’s reasoning shows a comprehensive view of what happened. Several […]

It´s official: Lyoness is a pyramid scheme!

As expected, Lyoness lodged an appeal against Salzburg District Court´s decision (31 C 651/16z – 11). The court of Appeal at the Regional Court Salzburg has now dismissed the appeal (22 R 351/16w) and confirmed that Lyoness is indeed a pyramid scheme. A further appeal at the Austrian Supreme Court (OGH) is not allowed.

Prosecutor´s Office: Criminal complaint against Lyoness founder

After years investigating, the Austrian Prosecutor´s Office Against Economic Crime and Corruption (WKStA) has filed a criminal complaint against Lyoness’ founder Hubert Freidl at the Criminal Court Graz. Mr Freidl is being charged with not having published a prospectus in time for an investment subject to the obligation to publish one. Additionally, they requested the […]

Lyoness and the debacle of India

“Greed is a tramp”, used to say a well-known Viennese bank manager. This describes best the current debacle of Lyoness in India. Thanks to the support – by inactivity – of the Prosecutor´s Office Against Economic Crime and Corruption back in Austria,