Νομολογία

  • Στοιχεία της υπόθεσης
    • Εθνικός αναγνωριστικός αριθμός: Recourse 1/2010
    • Κράτος μέλος: Κύπρος
    • Κοινή ονομασία:N/A
    • Είδος απόφασης: Πρωτοβάθμια διοικητική απόφαση
    • Ημερομηνία απόφασης: 09/11/2010
    • Δικαστήριο: Υπηρεσία Ανταγωνσιμού και Προστασίας Καταναλωτή
    • Θέμα:
    • Ενάγων: Competition and Consumer Protection Service
    • Εναγόμενος: A. F. Mpower Communications Ltd
    • Λέξεις-κλειδιά: black list, deceiving commercial practice, pyramid scheme, teenagers, unfair commercial practices
  • Άρθρα της οδηγίας
    Unfair Commercial Practices Directive, Chapter 2, Article 5, 1. Unfair Commercial Practices Directive, Chapter 2, Article 5, 5. Unfair Commercial Practices Directive, Annex I, 14.
  • Περίληψη
    The establishment, operation or promotion of a pyramid promotional scheme from a third country into a Member State, is an unfair commercial practice.
  • Πραγματικά περιστατικά
    The Consumer Protection Service (the "Service") conducted on its own initiative research in relation to the system of sales of the company World Ventures Marketing LCC in Cyprus (the "American World Ventures"), as well as the manner of promotion of its system of sales. The subject-matter of the violation in question was the establishment, operation or promotion of a pyramid promotional scheme, where the consumer considers that he has the opportunity to receive profit primarily from the introduction of other consumers into the scheme rather than from the sale or consumption of products. Based on the Unfair Commercial Practices Directive 2005/29/EC (implemented into national law by the Unfair Commercial Practices of Businesses to Consumers Law 103(I)/2007) pyramid promotional schemes are unlawful. As part of the investigation, Officers of the Service attended meetings that took place for purposes of promotion of the sales of the American World Ventures in Nicosia, Limassol and Paphos, Cyprus. The said meetings were organised by the company A. F. Mpower Communications Ltd. The Officers who attended the meetings concluded that:
    1. These meetings purported to promote the system of sales of products of the American World Ventures.
    2. The presentations were made by persons that had obviously received special training which is based on contemporary methods of communication politics, with the use of audiovisual media and concentrating on the psychology of the audience and the creation of an enthusiastic atmosphere which promotes acceptance, without questioning, of all that is referred to in the meeting.
    3. According to hotel records in Nicosia, during March 2010, at least 3250 persons attended, which were in their majority between the ages of 18 to 25. The audience consisted of registered members of the American World Ventures as well as potential members of the company, invited there by the registered members who wished to bring forth new members in exchange for an exemption from the monthly €40 membership fee.
    4. It was obvious that within the audience there were also professionals whose aim was to create an enthusiastic atmosphere by applauding and cheering from the various spots of the rooms in which they were dispersed.
    5. The presentations focused on two axes of information. The first related to discount privileges which the American World Ventures offered in specific hotels and destinations. The second related to monetary and other privileges which a representative of the American World Ventures could gain by inviting new members into the scheme.
    The Service's Director also attended the defendant's meetings and came to the same conclusions referred to above. The matter had grown to such an extent, that the Service had to issue a Public Announcement in relation to the above. The defendants were urged to terminate immediately all activity which relates to the establishment, operation or promotion of the American-based pyramid scheme.
    The defendants replied to the Service's communication by sending a Compensation Plan Overview, describing their business, which made obvious the promotion of a pyramid scheme; a letter by the American World Ventures which explained that the defendants have no right to alter the system of sales of the American World Ventures; and a letter by the defendants, which claimed that they are not in violation of any of the provisions of the Unfair Commercial Practices Directive 2005/29/EC (implemented into Cypriot law by the Unfair Commercial Practices of Businesses to Consumers Law 103(I)/2007).
  • Νομικό ζήτημα
    Is the establishment, operation or promotion of a pyramid promotional scheme from a third country into a Member State, an unfair commercial practice?
  • Απόφαση

    The planning of meetings by the defendants and all that was mentioned in such meetings and taking into account the manner of presentation of information given to the audience, falls within the case described in of Annex I (14) to the Unfair Commercial Practices Directive 2005/29/EC (implemented into Cypriot law by Annex I A (14) of the Unfair Commercial Practices of Businesses to Consumers Law 103(I)/2007) and as such is deemed to be an unfair commercial practice of the defendant towards the consumers under any circumstances.
    The defendant is promoting a pyramid scheme of sales of products of the American World Ventures where the consumer that he has the opportunity to receive profit primarily from the introduction of other consumers into the scheme rather than from the sale or consumption of products, in violation of article 5 of the Unfair Commercial Practices Directive 2005/29/EC (implemented into Cypriot law by article 4 of the Unfair Commercial Practices of Businesses to Consumers Law 103(I)/2007).
    In the determination of the seriousness of the penalty to be imposed, aggravating factors were the fact the defendant was promoting the pyramid scheme via an organised campaign on a country-wide basis, and that it continued to promote the same even after having been urged to terminate its unlawful activity.

    URL: http://www.mcit.gov.cy/mcit/cyco/cyconsumer.nsf/All/298FE3E4C8387ACBC2257FB900332FB9/$file/%CE%91%CF%80%CF%8C%CF%86%CE%B1%CF%83%CE%B7%2001-2010-A%20F%20%20Mpower%20ltd.pdf?OpenElement

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  • Αποτέλεσμα
    An administrative fine of €50.000,00 (fifty thousand euros), the highest amount provided in the national legislation, was imposed on the defendant.