On December 9th, The Norwegian Gaming Board put out a press release that they have launched an investigation into Lyoness.
The investigation comes after a lot of concerned people have contacted the Gaming Board and asked about the legitimacy of the company.
The Gaming Board has received information that it costs 20,000 Norwegian kroner (more than $3000) to join Lyoness. They are also concerned that members’ commissions mainly come from recruiting of members and not from the sale of goods and services.
In a letter addressed to Managing Director of Lyoness Norway, Mr. Terje Duesund, the company is asked to provide a lot of information including:
– The difference between being paid membership and free membership
– The number of members in total, paying and free members
– Bonus and commission system , including the turnover of the company split the revenue types
– Information about the products being sold
– Evidence of how that the turnover of the company in Norway in particular is due to the sale of products and not referral (of new members)
Lyoness have been given three weeks to respond to the Board’s request for information.