Steinar Husby, a World Ventures affiliate, recently told Norwegian media the company plans to sue the Norwegian state. This follows a court-approved ruling that declared World Ventures a pyramid scheme, forcing its closure in the country. Husby claims the decision cost the company "many millions in Norway and abroad."
World Ventures has already appealed the Norwegian Gaming Board's initial decision twice, losing on both occasions. The company filed an appeal with Lotterinemnda in May 2014, which upheld the Gaming Board's ruling in November. World Ventures then sought an injunction against the Gaming Board, essentially suing the Norwegian government, but a Norwegian trial court denied this in January.
Norway's judicial system includes District Courts, Courts of Appeal, and the Supreme Court. The specific court that rejected World Ventures earlier this year has not been publicly identified.
Norwegian law requires multi-level marketing companies to demonstrate that revenues stem from the sale or consumption of goods or services, not from recruiting new members. The Gaming Board's investigation found approximately 95% of World Ventures' revenue in Norway came from affiliate recruitment. Continuing this legal battle appears costly and unlikely to succeed.
Husby maintains confidence, however. He insists World Ventures affiliates do not earn commissions from recruitment. "We earn nothing on recruiting new sales representatives in the sale of our membership product," Husby stated.
This claim contradicts World Ventures' documented recruitment-driven business model. It remains unclear if Husby understands how his compensation has been structured over the last five years.
Husby informed Dagens Naeringsliv that World Ventures possesses "the muscle to take the fight against the state." Lawyers are reportedly being flown in from the United States. World Ventures holds a smaller market presence in the US and has largely avoided significant regulatory scrutiny there.
World Ventures has secured legal assistance from Håkon Juell Hassel, a partner at Elden & Co, and recently added Halvor Manshaus, a partner at Schjødt. These Norwegian lawyers will collaborate with their American counterparts to prepare a lawsuit against the state.
The company is not waiting for a Norwegian court to suddenly legalize pyramid schemes that derive 95% of their revenue from recruitment. A memo sent to the Gaming Board stated World Ventures "plans to resume operations in Norway during the summer."
The Gaming Board responded with a public warning. "Based on how things currently stand with us, WorldVentures' business is illegal in Norway," the Board announced. "Thus I would warn people against going into the business. We have received no information about whether World Ventures business is different now than at the time when we investigated whether the company's operations were illegal."
Husby claims World Ventures has modified its business model to comply with Norwegian law. "The company has adapted to the prohibition decision by the Gaming Board," Husby said. "The Gaming Board has threatened us with jail and police on the basis of the old model, but we're going to start up with a new model that we are confident that is within the requirements of the audit."
This "relaunch" of World Ventures would coincide with the company's lawsuit against the Norwegian state. The lawsuit seeks to reintroduce World Ventures' original business model. This creates a direct conflict between the claimed "new model" for operations and the legal objective to reinstate the old, prohibited structure.
Specific details of World Ventures' proposed Norway-specific business model have not yet emerged. The Gaming Board has stated it will address anyone promoting World Ventures in Norway directly or report them to the police.