I already updated Italy topic with it:
UPDATE August 10 2017.
Seems like August 2017 is a "fine spree" for AGCM
Onelife was not missed by this "fine spree" because:
We can see that some investigation about this case was continued after issuing those suspensions described in above text.The Authority had initiated a proceeding against One Network Services Ltd. And three physical people in their quality of the registrars of the promotional sites onecoinsuedtirol.it, onecoinitaliaofficial.it, onecoinitalia.com. (See press release of December 30, 2016) and suspended the activities related to the promotion of said cryptomoneta
It is clear that since this is Pyramid sales department of AGCM they are worried not so much about promising high returns from Onecoins (cause also mainstream media does regularly about Bitcoin), but they were focused on the fact on payments people needed to make to join the system. I personally have no clue what they are talking about cause you can join Onelife without even paying anything, just open Rookie free account and start selling. If you sell education or other products, it is ok to earn some money along. It is MLMIndeed, the most substantial part of the revenue generated by the activity promoted by professionals would result not so much from the purchase of the OneCoin virtual currency, but rather from the payment of the shares that consumers are called upon to pay when they join the system.
Wait, if I want to earn my target profit from compensation plan I need to recruit people? Not true. You can earn money if you sell a bunch of education or other products to end users, with zero recruitments. Seems like the problem here is that those IMAs practiced recruitment only model and the company Onelife did not respond to the Italian authorities so this investigation ended with Verdict and a fine to Onelife company too:To reach the earning target, they seem to be required to recruit other consumers. These behaviors appear to be related to the dynamics typical of pyramid sales.
This is a link to the original verdict.
Let's quote what it says:
It is clear that authority holds Onelife company responsible because their IMAs were promoting misleading material that promised to cash out Onecoins in 2018 and also only focused on recruitments of new people in order to earn money and that does look like a pyramid.The Verdict wrote:The Competition Authority, at the conclusion of its inquiry, found that the methods used by One Life Network LTD with the help of other professionals to promote the purchase of the OneCoins Virtual Coin and training packages sold in conjunction with.
This was incorrect from the point of view of the information provided to consumers about the characteristics of the product and its pyramid sales system. The practices in question ceased in Italy following the suspension measures adopted by the Authority prior to ONE NETWORK SERVICES LTD and the registrants of onecoinsuedtirol.it, onecoinitaliaofficial.it, onecoinitalia.com, and then on the companies ONE LIFE NETWORK LTD, Easy Life Srl
This was breaching of Onelife ToS:
Onelife ToS wrote:- An IMA may not make any claims, promises or other indications about potential speculative changes in exchange rates.
- The client should not be led to purchase the products through dubious and/or misleading promises nor by promising special benefits when these are linked to uncertain future outcomes.
Maybe this ToS did not exist when Italian IMAs in this subject started working so maybe this is why the company is held responsible for them.(15) IMAs may only market ONELIFE NETWORK system and services or recruit new IMAs in those states and countries officially authorized by the Company.
(16) IMAs are always prohibited from selling their own marketing and/or sales documents to other IMAs or from otherwise distributing them
Here we can see that high return of sales was promised to people. It's not a secret that Onecoin is not publicly traded, it is in ICO state.The Verdict wrote:In particular, the promotional activity was centered on the promise that the consumer, after acquiring a training package, could obtain OneCoins (through a process of transforming the rough currency called mining) and that later those virtual coins would have increased the Their value as a result of their dissemination, all the elements that they did not find in the course of the proceedings. One Life's business proposal was therefore based on a false, high-profit prospect: for example, the purchase of the $ 27,530 package would have allowed a value of € 3,000,000 after just two years of joining the program.
It is true that $27530 packages will yield Onecoins that have an internal value of $3 million and that WILL be their value once ICO finishes but the company DOES NOT promise to cash out those coins. The focus is mostly on the usability. Public trading will determine the real value.
Seems like their promotional material was too much optimistic about selling the coins at this price.
If they read Onelife T&C they would see that it is not the pyramid system. But maybe they refer to the T&S from the Easy Life Srl and onecoinsuedtirol.it, Onecoinitaliaofficial.it, onecoinitalia.comThe Verdict wrote:The procedure has enabled the Court to ascertain whether the practice was incorrect in relation to the deceptive modalities in which the features, terms and conditions of the proposed product were proposed, and whether the system incorporated a pyramid sale referred to in the Consumer Code Commercial practices in any case misleading.
So with numerous evidence investigated on marketing material and mentioned websites (they never mentioned onelife.eu and T&S on that web site) authority put out fines for Onelife company and also EasyLife SRL probably owned by verdict IMAs.The Verdict wrote:Therefore, in the light of the numerous evidences gathered thanks to the valuable collaboration of the Antitrust Special Department of the Guardia di Finanza for the conduct of numerous investigative investigations, the Authority concluded the proceedings by imposing sanctions against the companies ONE LIFE NETWORK LTD (€ 2,000. 000), ONE NETWORK SERVICES LTD (€ 500,000), Easy Life Srl (€ 80,000), as well as with the registrants of the onecoinsuedtirol.it sites, Onecoinitaliaofficial.it, onecoinitalia.com. (€ 5,000 each).
Onelife IMAs who owned a company EasyLife SRL, web sites onecoinsuedtirol.it, Onecoinitaliaofficial.it, onecoinitalia.com also marketed promotional materials of their own. Those promotional materials did not follow Onelife T&C guidelines but were focused on promising the sale of Onecoins in 2018 and also were putting recruitment of other people being a pyramid system indeed. So the company is being held responsible for their actions and it also got the most of the fine.
It is clear that Onelife T&C is not a pyramid sales system. Also at Onelife events that I followed and watched, if persons were summoned to the event for the first time they are being presented Onecoin concept and how to participate ICO, and no one is mentioned MLM system or recruitment, simply how to buy education and participate Onecoin ICO. Later on, on the follow-up, some people are also being presented an opportunity to spread this info further. That is how MLM works. But since the Onelife company did not respond to the authorities, they could only work and rule with the material obtained by those IMAs so it is totally normal that the company receives a fine.
It would not be the first time that a big MLM company receives a fine and moves on reorganized:
Herbalife paid $200Million fine because their leaders were promising unreal profits. One of the articles from Fortune.com is here. Wait, why did fortune.com did not write about Onecoin?
Also, Amway did not miss the chance to pay $25Million fine. So what happened to them?
The article is here.