Lyconet/myWorld: Another conviction as a pyramid scheme – OGH confirms questionable practices
In its judgment of 22 January 2025 (3 Ob 189/24a), the Austrian Supreme Court (OGH) in Vienna once again dealt with the Lyconet/myWorld business model – and once again the alarm bells are ringing. In a current case regarding the reclaim of marketer funds, the court ruled that the company is a prohibited pyramid scheme.
Explosive: This assessment is by no means a legal novelty. There are now more than two dozen rulings at the highest level that repeatedly confirm the same pattern. And yet, the controversial company continues to operate in the market.
Court: ‘Remuneration is based on new acquisitions, not on products’
The Higher Regional Court of Vienna had already made it unequivocally clear that the Lyconet/myWorld model violates competition law. The reason:
Instead of participants profiting from the sale or consumption of products, their earnings are primarily based on bringing new members into the system – the central characteristic of a classic pyramid scheme.
The current proceedings concerned the conversion of so-called ‘Customer Clouds’ and ‘Enterprise Clouds’ into the ‘myWorld Share Program’. Customers were persuaded to invest in alleged purchase participations – with the promise that these could later be converted into company shares.
However, the court made it unequivocally clear: a system that primarily finances itself by recruiting new members is unethical and void. In 2018, the Austrian Supreme Court had already ruled that a similar system was unlawful. Nevertheless, Lyconet/myWorld continues to operate questionable programmes based on the same principle.
Supreme Court demands further investigations
Despite the clear characterisation as a pyramid scheme, one question remains: to what extent are the current defendants actually liable for the obligations assumed?
But the core statements are clear:
Lyconet/myWorld shows all the characteristics of an illegal pyramid scheme.
The court sees clear violations of competition law.
Thousands affected – are criminal consequences looming?
There could be serious consequences for the thousands of so-called ‘top marketers’ who have spent years recruiting for Lyconet/myWorld. Not only could they face demands for repayment of millions, but those responsible could also face criminal proceedings.
For years, Lyconet/myWorld has been accused of promising consumers unrealistic earning opportunities – while in reality, it is mainly those who recruit new members who benefit. Despite numerous convictions at the highest level, the company continues to operate in a grey area.
Note: 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.
Source: RIS
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