Persons harmed by SkyBiz.com, that organised in the Internet a system of prohibited avalanche sales, have an opportunity to recover their money. In the result of a settlement reached by the American Federal Trade Commission, a total of USD 20 million were assigned for damages. There may be as many as 8,000 harmed persons in Poland

SkyBiz.com from USA promoted a venture based on a system of home work as allegedly guaranteeing fast revenues. At information meetings consumers were promised fast earnings, even a few thousand dollars weekly. The condition to earn the money was to involve new persons (“associates”) to participate in the program. The entry cost was USD 125 and with this one could buy an “e-Commerce Web Pack”, which in fact was just a basis to have a right to claim refund of costs when new program participants were recruited. SkyBiz.com staff convinced the participants to buy more packs to increase their potential earnings.

In 2001 the American Federal Trade Commission (FTC) sued SkyBiz.com. The charges concerned unlawfulness of a system based on legally prohibited scheme of avalanche sales. In the opinion of FTC, promises made to consumers were based on a false conviction - obtained with promotional materials - on the system efficiency. As American findings confirm, over 8,000 Poles participated in the program.

In the result of the settlement ending the proceeding initiated by FTC, the sued company undertook to set up a fund of USD 20 million to make refunds to harmed consumers. Consumers harmed by SkyBiz.com should as soon as possible submit their claims to Robb Evans & Associates, the entity managing payment of claims. Complaints are to be filed exclusively in English via the e-mail address designated on the web site: www.skybiz-redress.com

More information on the system and details on the settlement can be found on the web site of the American Federal Trade Commission - www.ftc.gov

Organisation of an avalanche sale system - consisting in making promises to buyers of goods or services of financial benefits in exchange for convincing other people to make the same transactions - is also prohibited in Poland pursuant to the law on the act on combating unfair competition.

Additional information:
Elżbieta Anders, Spokesperson of UOKiK
International Relations and Communication Department
Office of Competition and Consumer Protection
Pl. Powstańców Warszawy 1, 00-950 Warsaw
Ph.: (+48 22) 827 28 92, 55 60 106, 55 60 314
E-mail: eanders@uokik.gov.pl