Is Le-Vel a Pyramid Scheme: Separating Fact from Fiction

As an SEO expert, it's essential to deliver accurate and informative content that aligns with Google's standards. Today, we'll delve into the debate surrounding Le-Vel and whether it is indeed a pyramid scheme. We'll explore a variety of legal and industry perspectives on this controversial business model.

The Accusation

Lyoness, the parent company of Le-vel, has faced significant scrutiny since 2003. First, in 2019, the Italian Competition Authority ruled that Lyoness' cashback formula constituted an unfair and deceptive commercial practice and a pyramid scheme. In the same year, the Norwegian Gaming Board declared Lyoness to be an illegal pyramid scheme. Additionally, four independent civil courts in Austria have declared Lyoness a pyramid scheme. The core of a pyramid scheme is the illegal way of making money, which relies on recruiting new members to generate revenue, rather than a legitimate product-based business model.

The Current Business Model

Back when I was promoting Le-vel, it was based on a network marketing or MLM (Multi-Level Marketing) business model, which often involves recruiting new members to earn commissions. Some users claim that the business model is still multi-level and requires a lot of recruiting skills, which may shed some light on why it has been accused of being a pyramid scheme. However, there's a lack of recent updates, and it's possible that the company has shifted its business model, perhaps to an affiliate marketing model.

Alternative Perspectives

Several individuals and platforms have proposed alternative explanations for the business model and its legality. Some claim that it is not a pyramid scheme and that it is an MLM with hundreds of thousands of consumers. They point out that the FTC (Federal Trade Commission) allows the MLM industry to self-regulate and warns the public to make their own determination before joining any MLM. Nevertheless, it's important to note that self-regulation does not necessarily guarantee the legitimacy of the business.

Proven Cases Against Le-Vel

There are several documented cases against Le-Vel. For instance, Lyoness was fined 3.2 million euros by the Italian Competition Authority in 2019. Moreover, the company has been declared a pyramid scheme in several countries, including Norway, Italy, Switzerland, Poland, Turkey, and Russia. It's also noteworthy that some individuals have personally reported losing money and have joined groups to share their experiences.

Conclusion

While some arguments suggest that Le-vel is not a pyramid scheme, the legal and regulatory actions against Lyoness make a strong case that it is, indeed, a pyramid scheme in several jurisdictions. Prospective investors and customers should exercise caution and conduct thorough research before engaging with any MLM or network marketing company. Always verify the legitimacy of the company and its practices through reliable sources and with the advice of knowledgeable professionals.