The Norwegian Gaming Board today announced an investigation into Lyoness, a cashback and loyalty program. Following public complaints and a "risk and materiality assessment," the regulator plans to assess whether Lyoness operates as an illegal pyramid scheme under Norwegian law.
Information received by the Authority included claims that joining Lyoness costs $20,000. It also noted that members' commissions primarily stem from recruiting new participants, rather than from the sale of goods and services. Lyoness itself provides access to third-party discounts, offering no additional products or services beyond affiliate membership and investment in account units.
While Lyoness promotes free membership, the Gaming Board appears to focus on the accounting unit investment scheme operating alongside its cashback network. This unit investment system operates where new affiliates invest in units, expecting