MLM CANADIAN AND AUSTRALIAN ACN NEWS
NETWORK MARKETING TELEPHONE COMPY ACN ABSOLVED!
The High Court in Australia absolved ACN of the charges listed below and allowed ACN Telephone to operate in 2005. Just like the Canadian action (Read Down) below no publicity was made. Ed. Note: When government agencies make mistakes like ACN, they keep it quiet? it took some real MLM Detective work to find this governmental goof!
MLM ACN Australia Shortest Launch and Shut down in History
The Australian Communications Network Pty Ltd has given undertakings to the Federal Court, Adelaide following Australian Competition and Consumer Commission action.
The ACCC instituted proceedings on Monday, 15 November 2004 against Australian Communications Network Pty Ltd, a seller of telecommunications services, for alleged breaches of the pyramid selling scheme provisions of the Trade Practices Act 1974.
It also instituted proceedings against ACN's managing director, Mr Martin Paech an ACN director; two ACN representatives Mr Keith Janke and Gibbschade Pty Ltd (Gibbschade), and Gibbschade's directors Mr Jonathan Gibbs and Ms Christine Schade.
Ed Note: The link below in a telephone consultant reports ACN’s Managing Director Martin Paech (above) said, “ACN would run under the radar” of Australian MLM Law. This statement means that ACN would not go through the proper registration and clearance process within legal channels. This is Nuts! Save a little money and get busted by the law????
The ACCC alleged that ACN and Gibbschade participated in, promoted and induced or attempted to induce persons to take part in a pyramid scheme in contravention of section 65AAC of the Act, and that Mr Paech, an ACN director, Mr Janke, Mr Gibbs and Ms Schade were knowingly concerned in and/or aided and abetted those contraventions.
The focus of the ACCC's proceedings is the CAN's marketing system. Independent Representatives pay ACN $548 (including GST) and sell those services to consumers. Independent Representatives also have the right to recruit other Independent Representatives. Those Independent Representatives can receive commissions from their personal customers as well as commissions from customers of Independent Representatives they have recruited. In addition, Customer Acquisition Bonuses are paid on the number of qualified Independent Representatives. ACN has co-operated with the ACCC's investigation and provided substantial information about the operation of the scheme. However, ACN disputes the ACCC's allegation that the ACN scheme is in breach of section 65AAC of the Act.
The ACCC is seeking declarations, injunctions, corrective notices, compliance programs for the companies and the individuals, findings of fact and costs. The ACCC also sought an interim injunction that would prevent ACN from accepting payments from participants, which the ACCC alleges are "participation payments" within the meaning of the pyramid selling provisions of the Act, until the hearing and determination of the matter.
The application for interim injunction was heard yesterday in the Federal Court before Justice Brad Selway. As a result of the ACCC application, ACN has given undertakings to the court to the effect that:
all participation payments ACN receives from new Independent Representatives from midnight 23 November 2004 until further order of the Federal Court shall be held in trust
ACN will refund all participation payments received during the above period, plus any interested accrued, should the Federal Court find ACN in breach of section 65AAC, and
ACN will extend the cooling off period, under which new Independent Representatives joining during the above period can request a refund of their participation payment, until further order of the Federal Court. A trial is scheduled in the week beginning 21 February 2005.
Release # MR 264/04
Issued: 24th November 2004
Telecom expert warms about running “under the radar”
Shortest Launch and Shut down in History
MLM DETECTIVE FINDS A SECRET IN CANADA?
On November 26, 2003, the Honourable Judge Patrick H. Curran JPC ruled at the conclusion of a preliminary hearing into the charges below that there was not sufficient evidence to show that ACN was operating as a multilevel pyramid scheme as defined in the Competition Act and as such he discharged ACN on all charges. Rod Cook Ed Note: Not Made public, no Canadian news releases, interesting! Competition Bureau Embarrased?
CANADA
Multi-level Marketing Firm Charged for Misleading Participants
OTTAWA, August 29, 2002 The Competition Bureau announced today that eight charges were laid in Halifax, N.S., against All Communications Network of Canada Co./ACN, Reseau De Toutes Communications Du Canada C.R.I., under the Competition Act's deceptive marketing practices provisions. The company, whose registered corporate office is in Halifax, operates a multi-level marketing plan which promotes and sells long-distance telecommunication services.
The Competition Bureau alleges that ACN Canada, as it is known, and its participants, through its web sites and at public meetings, recruited new participants by exaggerating income expectations without disclosing the income of a typical participant. Under the Competition Act, it is illegal to make reference to earnings in a multi-level marketing plan without disclosing a typical participant's income. In addition, operators of a multi-level marketing plan must ensure that any income representation made by a participant in the plan includes disclosure of a typical participant's income.
Furthermore, ACN Canada was charged with operating an illegal scheme of pyramid selling by offering recruitment bonuses to participants who paid for the right to recruit other participants.
Competition Bureau Wins award For Targeting Scams
WatchDog Note: The earnings claims attracted attention and additional charges were added on. Don't create a danger to your company!
OTTAWA, August 28, 2002 The Competition Bureau is part of the Toronto Strategic Partnership, which received the Bronze Award for Innovative Management at the IPAC 2002 National Conference today in Halifax, N.S. The IPAC (Institute of Public Administration Canada) Award for Innovative Management was established in1990 to acknowledge public sector excellence
The Competition Bureau is one of the founding members of the Toronto Strategic Partnership, which also includes the Ministry of Consumer and Business Services. the Ontario Provincial Police, PhoneBusters National Call Centre, the Toronto Police Service, York Regional Police, the U.S. Federal Trade Commission and the United States Postal Inspection Services.
Other News
OTTAWA, June 10, 2002 Canadian and U.S. law enforcers announced increased efforts to cooperate in targeting cross-border deceptive telemarketing at a press conference today in Washington, D.C. The Competition Bureau and the Federal Trade Commission have formalized how they will share complaint and investigation data in order to catch cross-border fraud operators faster and more efficiently. This protocol streamlines and enhances cooperation under agreements adopted in 1995 and 1996.
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