The Australian Competition and Consumer Commission (ACCC) has won injunctions against three people in the Sydney Federal Court for allegedly running an online pyramid scheme.
According to the ACCC, Laulhati Jutsen (also known as Teddi Jutsen), Tina Aroha Brownlee and David Graeme Scanlon, promoted a pyramid scheme that operated out of the popular social networking website, Facebook.com, as well as the TVI Team Oz website.
TVI Team Oz has the motto ‘Taking the nation on vacation’. New members pay upfront fees of $US275 and then get their own websites with which to promote and encourage other people to join the system, which provides them with a commission.
The regulatory body claimed Jutson, Brownlee and Scanlon were breaching the Trade Practices Act 1974.
“Pyramid selling schemes are deliberate scams designed to benefit the originators while taking advantage of later recruits,” the ACCC said in a statement. “They inevitably collapse leaving most participants out of pocket.
“The court orders also restrain the individuals from knowingly accepting payment from, or making payments to other participants in the scheme.”
The company’s website was also ordered to post a notice on its front page informing users it was being pursued by the ACCC in the Federal Court.
“Our TVI Team Oz will get through this !!!!” the website said. “Whatever it is you are looking for in life you will find it right here!!!!!”
The ACCC is preparing the matter for a final hearing in Sydney and will be seeking penalties against the three accused.