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The Australian arm of international shopping community Lyoness says it feels “vindicated” after the Federal Court last week ruled its loyalty program is not a pyramid scheme and did not involve unlawful referral selling.

Lyoness, an Austrian company founded in 2003, operates a ‘cashback’ scheme which provides rebates to members who shop through a Lyoness portal, use its vouchers or present their Lyoness card at participating retailers.

In legal proceedings pursued by the Australian Competition and Consumer Commission against Lyoness Australia, the consumer watchdog had alleged the company was offering financial incentives to members to recruit new members who also make a down payment on the site for their future shopping.

But the company argued members only received benefits when they shopped, regardless of whether they introduced other members or not.

 

Shopping community Lyoness not a pyramid scheme, court rules – SmartCompany

The Australian arm of international shopping community Lyoness says it feels “vindicated” after the Federal Court last week ruled its loyalty program is not a pyramid scheme and did not involve unlawful referral selling.

 

 

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