• The Alternet company and the Adblast platform have been recognized as pyramid-like incentive schemes. The decision will make it easier for consumers to recover money before a court.
• Jewel Lines is a company soliciting investments in gemstones that has failed to provide information upon the UOKiK's request. The company was charged with a financial penalty.

President of UOKiK Tomasz Chróstny issued subsequent decisions regarding investments in non-standard products. Alternet set up pyramid incentive schemes on the Alternet website and the Adblast advertising platform, while Jewel Lines, which advertises investment in gemstones, failed to provide information upon the Office's request.

“Many people are offered alternative financial investments that deceitfully promise fast, safe and high returns at no risk. Bargains that are too good to be true can actually prove to be a financial fiasco. Pyramid-like incentive schemes are commercially attractive, although the chance of making money is small, in contrast to the high risk of suffering a financial loss. We should not be tempted by empty promises that make many people lose their savings,” Tomasz Chróstny, President of UOKiK, warns.

Alternet &Adblast

In his most recent decision, the President of UOKiK found that Alternet, a United States-based company, operated under the pyramid-like incentive scheme.  On Alternet website, the consumer could purchase packages ranging in price from USD 10 to USD 1,000 or purchase one of the so-called statuses on the Adblast platform. The company then promised alleged profits in exchange for soliciting other people to make payments. This pattern is typical for a pyramid-like incentive schemes, which are prohibited by law.

“As a result of Alternet’s practices, many consumers might have failed to gain additional revenues promised by the company and lost the money they invested. For these reasons, I ordered the company to return the money, although this may prove difficult as the company is based outside the European Union. I would like to warn once more against entrusting money to dubious entities that may be a disguise for fraudsters,” Tomasz Chróstny, President of UOKiK, stresses.

The company must inform consumers that they are eligible for a refund and, within 30 days of receiving a request from consumers, return the money. Details of this solution are described in the decision. The decision is not final since the company has decided to appeal to a court of law.

Jewel Lines

The President of UOKiK imposed a penalty on Jewel Lines for failure to provide information in the course of the investigation. The company encourages investment in gemstones and to purchase its shares. The Office has been conducting an investigation into Jewel Lines to determine whether the company's rules for offering and purchasing gemstones and shares violate the collective interests of consumers. According to the President of UOKiK, encouraging investment in the "Family Jewels" project and participation in the "From Diamonds to Profits" scheme may be burdened with significant risk.

In the course of investigating Jewel Lines' business, the Office referred questions to the company but did not receive any response. Therefore, the President of the Office imposed a financial penalty of PLN 25,000. Under the law, entrepreneurs are obliged to provide all necessary information and documents, otherwise they risk a financial sanction of up to EUR 50 million maximum. The decision is not final and may be appealed against to the Court of Competition and Consumer Protection.

Furthermore, following the President of UOKiK's notification of possible irregularities, the Polish Financial Supervision Authority initiated audit activities regarding Jewel Lines Poland's operations. The District Prosecutor's Office of Warsaw – Mokotów is also conducting proceedings concerning this entity (ref. no. PR 3 Ds. 116.2021).

Consumer support:

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Additional information for the media:

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