Norway's Gaming Board declared Wealth Masters International an illegal pyramid scheme following an investigation. The finding revealed money flowed from new member recruitment, not product sales, with participants paying to join and products priced far above their worth.
The Gaming Board's probe found the company's structure operated as a pyramid. This violated Norway's Lottery Act Section 16, which explicitly bans pyramid systems and chain schemes. The Gaming Board then ordered Wealth Masters to cease all sales activities immediately.
Wealth Masters International contested the ruling aggressively. The company accused the Gaming Board of collusion and libel. It filed an appeal. The Gaming Board did not change its position, upholding its initial determination. The final decision is expected to affirm this finding.
Unusually, Norway's Direct Selling Association (DSA) defended the Gaming Board. The DSA, a trade group for legitimate direct sales companies, released a statement supporting the regulatory action. They identified Wealth Masters as a "rogue company" that harmed the reputation of honest operators within their industry.
"When we warn against certain companies' business practices, it is because we see that consumers are usually the losing party," the DSA wrote. The association noted that companies like Wealth Masters claim to operate in direct selling, creating confusion for consumers and for legitimate members.
This statement held significant weight. Competitors and peers within the same market publicly called out a company as illegal. This signaled that the industry itself demanded accountability, not just regulators protecting their domain.
The association used the Wealth Masters case to push for broader government action. They urged regulators to investigate other companies operating with similar schemes. The DSA argued that if one pyramid operation was found, others likely exist and require the same scrutiny.
The Norway case holds import globally. Wealth Masters operates with the same compensation plan and business model across the world. The company uses identical practices in every country. Norway, however, remains the only nation to formally declare it illegal. No other country has concluded an official investigation with such a finding.
This discrepancy matters. While Norway moved decisively, Wealth Masters continues operating elsewhere using the same structure that Norwegian regulators deemed fraudulent. The company maintains its model is legitimate. Evidence from Norway suggests otherwise.
The Gaming Board's final ruling is pending. Its investigation and appeals decision indicate it will confirm Wealth Masters operates an illegal pyramid scheme, extracting money from participants under false pretenses while enriching those at the top. For now, Norwegians have protection.