Oslo police have shut down an investigation into Lyoness, the multilevel marketing scheme that Norway banned three years ago.

Audun Kristiansen, a prosecutor at the joint unit for intelligence and investigation, told E24 the case demands too much time and money. "In light of the current situation and that the case will require considerable resources over a long period of time, we consider it necessary to allocate resources elsewhere," he said.

The Gaming Board reported Lyoness to police last October after discovering the company was still being promoted in Norway despite a permanent ban imposed in February 2019. The ban came after two appeals and followed years of investigation starting in 2013.

But here's the problem: Lyoness claims it never got banned at all. The company's Norwegian attorney insists Lyoness operates legally under a different name, Cashback World. That argument has helped the scheme stay active in a legal gray zone.

Henrik Nordahl, a director at the Gaming Board, suggested the police decision might not matter much. He told E24 that Lyoness has already wound down most of its operations in Norway. Activity levels are nowhere near what they were during the Gaming Board's initial investigation more than a decade ago.

Still, the police decision opens the door for promoters to keep recruiting without fear of prosecution. And that exposes the real weakness in Norway's fraud enforcement.

The Gaming Board has the power to identify illegal pyramid schemes and issue bans. It did exactly that with Lyoness. But when it comes to actually enforcing those bans, the responsibility falls to local police departments. Oslo police just chose not to show up.

No one disputes what Lyoness is or was. The scheme pulled in victims with promises of cashback rewards for shopping, then pushed them to recruit others and buy overpriced products to climb the ranks. Classic pyramid structure. The Gaming Board found it illegal. Case closed, supposedly.

Except it isn't. Police budgets are tight. Cases are stacked up. A multilevel marketing scheme operating under a different name with dwindling membership doesn't seem urgent. So the ban becomes ornamental, a regulatory gesture without teeth.

For people in Norway who lost money to Lyoness, the police decision is a final insult. They can't recover their cash. The company won't face criminal charges. And promoters can keep working the scheme in the shadows, betting that cash-strapped police departments won't chase them.

The Gaming Board did its job. The courts backed them up. But without police willing to enforce the law, none of it matters. Lyoness remains banned on paper while operating in practice, a contradiction the Norwegian justice system seems willing to live with.

🤖 Quick Answer

What is Lyoness and why did Norway ban it?
Lyoness is a multilevel marketing scheme that Norway permanently banned in February 2019 following years of investigation beginning in 2013. The ban was upheld after two appeals due to the company's structure and operations meeting criteria for illegal pyramid schemes under Norwegian law.

Why did Oslo police close the Lyoness investigation?
Oslo police discontinued their investigation into Lyoness due to insufficient resources. Prosecutor Audun Kristiansen stated the case required excessive time and funding, necessitating allocation of resources to other priorities within the joint intelligence and investigation unit.

How was the case reported to authorities?
The Gaming Board reported Lyoness to police in October following discovery that the company continued operating and being promoted in Norway despite the three-year-old permanent ban established in February 2019.

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