• The President of UOKiK explains whether online platforms such as BE Poland and GrowUp Session have violated collective interests of consumers.
• He checks, among other things, whether they rely on the pyramid-type incentive scheme where benefits promised depend mainly on introducing subsequent individuals into the scheme.
• In the case of such systems, consumers may suffer from severe financial losses.

UOKiK has been investigating into two projects, namely: BE Poland and GrowUp Session, which offer its consumers online training packages in online investment, among other things. The President of UOKiK initiated preliminary investigation that is to carefully check the rules of operation and roles of promoters and managers in these projects.

- We have been monitoring the market in terms of alternative investment projects available online which are tempting with a vision of prompt and high risk-free profits - says the President of UOKiK, Tomasz Chróstny. - We are verifying those undertakings which may give rise to some doubts in order to eliminate illegal pyramid-type incentive schemes. We always appeal to consumers for prudence and scepticism as to online projects, which particularly concerns undertakings of non-transparent rules of operations and the ones in which benefits for participants are generated, first and foremost, from contributions made by other users.

BE Poland 

BE Poland is a part of an international project called BE (Better Experience) from Dubai while its participants act as TPR group (Trading People Revolution). They sell subscription packages which entitle to use the platform and software whose aim is to teach and learn trading. Promoters recruit subsequent individuals who receive remuneration for packages sold and for recommending the project. BE Poland is being promoted in social media, mainly through the Instagram platform. In the course of the investigation, the President of UOKiK wants to examine whether the rules of operations of BE Poland may result in a violation of the collective interests of consumers. In particular, whether under the cover of education on selling and buying financial instruments, a pyramid-type incentive scheme is not conducted. 

GrowUp Session

It is another project which is being promoted through the educational aspect - within its framework, packages are offered, thanks to which consumers are to take part in training sessions in trading in Forex market or trading in crypto-currencies. Persons encouraging to take part in the partner scheme act mainly through their profiles on Instagram and get recipients’ attention by showing their high standard of life and boasting with high earnings achieved, as they claim, thanks to their participation in GrowUp, which is to encourage subsequent individuals to join the project. Also for this entity, the President of UOKiK verifies whether its operations do not violate the collective interests of consumers.

What you should watch out for

Dishonest entrepreneurs offer Internauts a capacity to earn money by way of participation is some risky investment projects. They involve a wide and consumer-attractive range of topics - training sessions in financial benefits (like in the case of BE Poland or GrowUp Session), but also promoting health, fitness or travels. In a number of cases, founders and promoters of those undertakings amaze with wealth and luxury on the Internet. They are trying to enrol, for the projects, the persons who are young or have no stable life standing, tempting them with a vision of prompt and significant risk-free gains. 

Pyramid-type incentive schemes - how do they work?

Pyramid-type incentive schemes are hidden under the slogans “programme”, “project”, “investments”, “making money on the Internet”, “making money from home”, “advertising platform”. They are often credited by influencers and celebrities who take part in events or live transmissions in some popular social media organised by scheme owners and so-called “shills”. 
The scheme is as follows: we contribute money (e.g. for subscription, educational subscription), we recommend the platform to other individuals and we get remuneration for their entering into the scheme. The said remuneration originates first and foremost from contributions made by subsequent recruited individuals. Benefits depend on the number of persons introduced into the project. This is the way in which the entire system is financed. The contributions made do not generate any added value, they are not invested in any assets and do not earn any profits as the basis of the project does not consist in the sales of any goods or services or actual, measurable value. The contributions made by the participants supply the project which only pretends to be a real investment. The money goes to scheme organisers and people at the top of the hierarchy. The scheme works as long as more money is paid in than paid out. The number of new individuals joining the project must be increasing rapidly. When it stops, the pyramid-type incentive scheme collapses, while its participants usually lose all their entrusted money; meanwhile, benefits are earned only by its founders who cannot be contacted any longer. 

The actions concerning these projects are not the only ones pursued by the President of UOKiK - previously it intervened in the case of undertakings such as: iGenius, Dream Trips and Jifu. Last year, he imposed almost PLN 1 million fine on Selfmaker Smart Solution and Selfmaker Technology.

Some such undertakings may also have the character of the so-called pyramid scheme, i.e. fraud crime under Article 286 of the Penal Code, which takes place in an organised manner. If you suspect that you have faced such a situation, inform the Police or/and the Public Prosecutor’s Office.