• President of UOKiK Tomasz Chróstny has initiated proceedings against three entrepreneurs who solicited on-line and at various events into investing in FutureNet, FutureAdPro or to join the NetLeaders network.
• These are pyramid-like incentive schemes and their establishment, operation and promotion is prohibited and considered an unfair market practice.
• The entrepreneurs are subject to financial penalties.

In late December 2020, President of UOKiK Tomasz Chróstny imposed the first penalty for soliciting into pyramid-like incentive schemes - on Youtuber Damian Żukiewicz (INVESTPROVIDER). He has now brought charges against other three entrepreneurs who have promoted such prohibited projects. These are: Mateusz Gużda (formerly "iPrime Consulting" Mateusz Gużda from Kluczbork), Zbigniew Lemański (former member of the supervisory board and liquidator of B3Team S.A. from Wrocław, in which the member of the management board was, inter alia, Damian Żukiewicz) and Bartłomiej Żukiewicz (suspended activity of Bartłomiej Żukiewicz Investment from Wrocław). The charges relate to the promotion of pyramid-like incentive schemes, i.e. projects promising profits that depend mainly on the introduction of further people into the system and not on the sales or consumption of products. Their organization and promotion is prohibited by law.

“Shilling for pyramid-like incentive schemes is an unfair market practice that may lead to human tragedies. Consumers who believe in the high and easily achievable profits promised by the shills can lose their money and even get into debt. These types of schemes always fail eventually, and it is the organizers and shills who actually make money from them. Their actions are not only illegal, but also ethically reprehensible. I will be consistent in my fight against shills, I expect to ensure that the promotion of pyramid-like schemes will no longer be profitable,” Tomasz Chróstny, President of the Office of Competition and Consumer Protection, stresses.

Mateusz Gużda, Zbigniew Lemański and Bartłomiej Żukiewicz promoted at least one of the pyramid-like incentive schemes: FutureNet portal, FutureAdPro advertising platform and/or NetLeaders network. The first two run by the companies FUTURENET UKRAINE companies from Lviv and BCU Trading from Dubai would promise remuneration for recruiting new members into the system and soliciting them into buying participation packages or statuses. The President UOKiK warned against them already in March 2019, and July 2020 he issued a decision, in which he recognised that these were illegal pyramid-type incentive schemes. NetLeaders is, on the other hand, CL Singapore's initiative aimed at marketing DasCoin cryptocurrency. The company offered licenses that used to cost from EUR 100 to EUR 25 thousand and promised profits if someone would solicit other people to invest their money. UOKiK warned against CL Singapore in March 2019, and in December 2019 it issued  a decision, in which it recognised that it was a pyramid-type incentive scheme.

On their websites, social media, Youtube, and at events, the entrepreneurs were encouraging people to sign up for the described schemes, deposit money into them, and bring in even more people. They were enticing with visions of easy and high profits and exotic travels. For example:

• Bartłomiej Żukiewicz would write on his website: On my example, I will tell you that as of today, out of the PLN 3,400 invested, I have already made PLN 19 thousand and this number grows with each day. I am now financially free and can enjoy free time with my loved ones. The first opportunity to make more money with Futurenet are the MATRICES.
• Zbigniew Lemański would praise: FutureNet is undoubtedly a company thanks to which my financial status is at a completely new, higher level. At a level not only visible in the numbers on your account, but also in the quality and innovation of earning and multiplying money. He also participated in events related to the promotion of FutureNet and FutureAdPro, for example, in 2017 in Krakow he performed the song "My FutureNet" composed by himself, in chorus you could hear: We buy matrices, invite friends, FutureNet we recommend and earn money.
• Mateusz Gużda was a "global ambassador" for NetLeaders, he used to promote this network during a number of events and for his best results in selling licenses he was awarded a trophy by the organizers.

The penalties which may be imposed for a practice violating collective consumer interests may amount to as much as 10% of the turnover of a given undertaking. In this context, an entrepreneur is considered to be not only a person registered in Central Registration and Information on Business, but anyone - including bloggers, influencers - who in an organized and continuous manner actually runs a business and profits from, inter alia, launching, managing or promoting pyramid-type incentive schemes.

How to recognize a pyramid scheme

The pyramid-type incentive schemes are systems in which the consumer is solicited to participate in the "project" in the sales system in exchange for the promise of remuneration or other material benefits, which depend first of all on the recruitment of more people into the system and not on the sales or consumption of goods. Such schemes typically involve investments in tokens, cryptocurrencies, educational or language packages, apartments, etc.

As a rule, the pyramid-type scheme operates in the following manner: you pay in money and recommend others, for which you receive remuneration if they join in. It comes from the contributions of the persons which you recommended either directly or indirectly. This way it is you, your friends and acquaintances who finance the scheme. However, after a certain period of time the system collapses since the money that you pay are not invested in any assets and do not yield any profits. The money goes to their organizers and people in the top position in the chain. The system works as long as the number of people joining the system and contributing money increases exponentially. The condition for such a system to work is a continuous increase in the money paid in, which is not possible. Eventually, the system collapses and you lose all your money.

Pyramid-type incentive schemes are hidden under the slogans “program”, “investments”, “making money on the Internet”, “work from home”, “advertising platform”. They are often credited by celebrities, who take part in events promoting fraudulent projects, organized by scheme owners and shills. Sometimes they use images of famous people - actors, businessmen or athletes, stolen by dishonest entrepreneurs to promote an illegal enterprise.

Some such undertakings may also have the character of the so-called financial pyramid, i.e. fraud (Art. 286 of the Penal Code), which takes place in an organized manner. In such a situation it is best to inform the law enforcement authorities (police, prosecutor's office).

Consumer support:

Phone: +48 801 440 220 or +48 22 290 89 16 – consumer helpline
Email: porady@dlakonsumentow.pl
Consumer advocates – in your town or district

Additional information for the media:

UOKiK Press Office
Pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone +48 695 902 088, +48 22 55 60 246
E-mail: biuroprasowe@uokik.gov.pl
Twitter: @UOKiKgovPL