• The President of UOKiK, Tomasz Chróstny, issues a warning against a company operating under the name International Markets Live, which offers educational packages on the im.academy platform.
• The company operates a partnership programme in which it promises profits dependent on the introduction of new members into the system.
• The President of UOKiK pressed charges against the company for creating, operating and promoting a pyramid scheme, for which the company faces a penalty of up to 10% of its annual turnover.

[Warsaw, 17 August 2022] Company under the name International Markets Live from New York operates the im.academy platform. On that platform it sells educational packages (referred to as academies) containing materials from the fields of finance and e-commerce. In the first month, access to one “academy” costs USD 234.95, whereas in subsequent months – USD 174.95. The company also runs a partner program. Individuals who have entered into the so-called IM Independent Businessman Agreement and pay a fee of USD 16.71 each month can enjoy benefits that are primarily dependent on the acquisition of new members (consumers) to the system.

“I would like to warn consumers against the im.academy platform. I pressed charges against the company operating that platform for creating, operating and promoting a pyramid promotional scheme. This type of scheme is legally prohibited as an unfair market practice. The analysis of collected materials, includings consumer signals, indicates that the scheme operator and individuals promoting the im.academy platform are primarily focused on marketing and acquisition of new members. The educational activities, on the other hand, are “incidental” and intended to create the appearance that the project is legal and to de facto mask the actual objective, which is to obtain money from platform users,” said Tomasz Chróstny, President of the Office for Competition and Consumer Protection (UOKiK).

“This type of scheme needs constant, exponential inflow of new members and their money. It is not sustainable in the long-term, which is why the scheme fails and consumers lose their money. There is a serious risk that the same can happen in this case, hence the issued consumer warning,” added the President of UOKiK.

What is a pyramid scheme?

Pyramid schemes are schemes in which the consumer is solicited to participate in the "project" in exchange for the promise of remuneration or other material benefits, which depend primarily on the recruitment of more people into the scheme and not on the sales or consumption of goods. Pyramid schemes are often hidden under such slogans as “program”, “investments”, “make money online”, “make money from home”, “advertising platform”. As a smokescreen, they offer investments in tokens, crypto currencies, educational packages, apartments, etc. 

As a general rule, pyramid schemes operate as follows: you pay in money, refer others, and receive remuneration for referring them. It comes from the contributions made by the persons which you referred, 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 scheme collapses since the money that you pay in are not invested in any assets and do not yield any profits. The money goes to scheme operators and people at the top of the chain. The scheme works as long as the number of people joining and contributing money increases exponentially. A prerequisite for the scheme to work is a continuous increase in the money paid in, which is not sustainable. Eventually, the scheme collapses and you lose all your money.

The setting up, operating or promoting a pyramid scheme is subject to a fine in the amount of up to 10 percent of annual turnover generated by the business.

Consumer warning

Moreover, pursuant to the Act on Competition and Consumer Protection, the President of the UOKiK may issue a warning when he concludes that an undertaking applies illegal practices which may put a substantial group of consumers at risk of significant financial losses or adverse consequences. Warnings are published on the website of UOKiK.

The consumer warning referred to in the press release concerns a company operating under the name International Markets Live, INC. having its registered office in New York (United States of America).

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