Adhesion contracts and panic: Lyconet’s new terms and conditions in the legal crossfire!

A disturbing example shows once again how Lyconet forces its marketers into questionable contractual relationships.  

The new general terms and conditions (GTC) dated 12 October 2024 were apparently drafted in haste and presumably out of legal necessity – at the expense of those who have trusted the company for years.  A recent objection to the new terms and conditions reveals the questionable methods of the company, which uses unconscionable clauses to legally entrap marketers. 

Loss of payments: Legally questionable practices 

Particularly controversial is a clause stating that all payments made by marketers to Lyconet for services or vouchers will be withheld in the event of cancellation.  

This regulation completely disregards reimbursements, even if the marketer only objects to the new terms and conditions. In practice, this means that marketers who exercise their right to object to the new conditions could suffer significant financial losses as a result – without the possibility of reimbursement.  

The strategy seems clear: marketers are being coerced to accept the new terms and conditions rather than exercise their rights for fear of suffering losses. 

Read more about this here:

Playing with confusion and intimidation 

Lyconet’s response to the contradictions is symptomatic of the company’s non-transparent communication policy. Instead of addressing the marketers’ specific objections, the rejection of the terms and conditions is interpreted as a complete withdrawal from the contract – a legal trick that shifts the blame to the marketers and undermines their demands.  

Most marketers are not trying to terminate the entire contract, but merely to defend themselves against the new, unfavorable clauses. In particular, Section 5 of the terms and conditions, which gives Lyconet the right to unilaterally change contract terms, poses a massive risk to marketers and makes their position in the contract virtually worthless. 

Legal precedent: the role of the Austrian Supreme Court 

Lyconet seems to have learned little from the past.  

The Austrian Supreme Court (Oberster Gerichtshof, OGH) has already declared numerous clauses of Lyoness and Lyconet to be illegal and void.  Should these terms and conditions end up in court again, the same ruling could follow.  

The invalidity of the terms and conditions means that affected marketers would be able to reclaim payments made and be compensated for losses.  

The legal situation is on the side of the marketers, and Lyconet could no longer legally assert any claims arising from the disputed clauses. It is therefore advisable that the marketers concerned carefully review their contractual relationships and not be intimidated. 

Refunds and legal consequences 

For many marketers, the question of refunds is particularly relevant. If a court rules that the terms and conditions are not transparent and are therefore invalid, payments made to Lyconet could be reclaimed – despite the original exclusion clauses. Should Lyconet continue to try to insist on these unlawful conditions, the company could face further legal consequences.  

It is becoming increasingly likely that Lyconet wants to keep marketers entrapped in contracts that seriously jeopardize their rights and financial security. 

Legal advice and resistance 

Marketers would be well advised to take legal action against the new terms and conditions and, if necessary, to demand repayment. BEKM offers support in enforcing such claims and in protecting one’s own rights. This case is a cautionary example that should prompt marketers to critically question their position in this network and to actively defend their contractual rights. 

If you disagree with the novation of your Lyoness, Lyconet or myWorld account to the October 2024 terms and conditions you have the right to object without your account being terminated. If Lyoness terminates your account following your objection you have the right to demand the full repayment of your down payment investments. If Lyconet novates your account to the new terms and conditions without your consent the new terms and conditions will not be legally enforceable. 

Marketers that do not accept or object to the October 2024 terms and conditions reserve the rights to reclaim investments and can contact us at BE Conflikt Management to join the world’s largest collective litigation being brought against Hubert Freidl and responsible Lyoness, Lyconet and myWorld group companies. 

And as always, those affected are welcome to comment on this, or if someone has more or different information, they are welcome to share it with us. We are not interested in making false claims and our primary goal remains the provision of complete documentation.

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