Lyoness

The Lyoness International AG is a stock corporation founded by Hubert Freidl 2003, which calls itself " country and sector spanning shopping community." The Company's headquarters is located in Buchs (St. Gallen, Switzerland ).

In 2013, Lyoness is active in 44 countries and was named one press release about 29,000 partner companies and 150,000 points of acceptance in Europe, North America, South America, Middle East, Asia, Australia and Africa.

The company's name is borrowed from the Celtic saga surrounding the Kingdom of Lyonesse.

• 2.1 International Organization
• 2.2 Continental Organization
• 2.3 Country organization
• 2.4 Certificates

Business Model

The company has three different business models

As a cross-sector international shopping community is Lyoness partner companies from purchasing terms that are passed on to members. The member can shop on four types at the partner companies to encash the benefits:

• Lyoness Cashback Card
• Mobile Cashback, crediting one position on the smartphone and tablet PCs via Lyoness App
• Cashback Vouchers respect of original vouchers of the partner company by Lyoness
• Online shopping at partner companies on the Lyoness website

Member benefits

Member benefits from the loyalty program can be summarized as follows:

• Cashback: For purchases from a Lyoness partner company members receive up to 2% Cash Back. From a credit of € 5 on the bank account of the payment to be made on a weekly basis to the private bank account of the member.
• Friendship Bonus: For purchases of directly recommended by the recommender members ( those who registered on the recommendation of the member at Lyoness ) and from these sponsored members ( indirectly recruited members) that have been recognized in the Lyoness loyalty program, the member receives each to to 0.5% of all purchase amounts than friendship bonus.
• Advanced Member Benefits: Members also have the opportunity to get over their own purchases and the purchases of all direct and indirect members recommended extended member benefits or to become a premium member under certain conditions.

Sponsorship and public engagement

The company supports various events in public areas such as the Austrian Golf Open, the European Juniors League, the black Maritime Festival or the RTL Donation Marathon. Lyoness shows involvement in the self- founded Child and Family Foundation which implements the company's CSR strategy and also in the self- founded Greenfinity Foundation in the field of environmental protection. The latter claims to be working with, among others with the Institute for Process and Particle Engineering of the Technical University of Graz. The Lyoness Greenfinity Foundation supports measures for effective climate protection, the conservation of natural habitats and the reduction of greenhouse gases in the atmosphere. The financing of the foundations is carried out partly on the turnover of the Group.

Corporate Structure

International Organization

The Lyoness International AG are assigned as staff following organizations Lyoness eBiz GmbH, Lyoness Data Service GmbH, LYONESS Child and Family Foundation (Foundation), Lyoness Greenfinity Foundation (Foundation ). The International AG is the parent of five continental organizations.

Continental organization

The Continental organizations are formed as limited companies, these are:

• Lyoness Europe AG (founded in 2003) with a focus on Europe has its headquarters in Buchs SG. The LYONESS Management GmbH and LYONESS Service Center GmbH serve here as a staff.
• Lyoness North America (founded in 2009) with a focus on North America is headquartered in New York City.
• Lyoness IMEA SA (founded 2011) with focus on the Middle East and Africa has its headquarters in Buchs SG.
• Lyoness South America S. A. (Founded 2011) with a focus on South America
• Lyoness Asia Limited (founded in 2011) with a focus on Asia with Australia but without the Middle East is headquartered in Hong Kong.

Country organization

The national organizations are subordinate to the continental organizations and run as limited liability companies, they are established as a function of sales success.

Certificates

The European companies have been certified according to ISO 9001:2008 by Quality Austria and received as well as the IQNET certificate. An enterprise -wide statement is not involved.

Criticism

The group is accused of an " opaque " business model and operating an illegal pyramid scheme.

Both the Austrian Chamber of Labour, the Austrian Consumer Information Association, and the Swiss observers warn a skeptical and critical attitude towards the promised benefits of the Group.. The Swiss consumer magazine K- Tip leads Lyoness on a " warning list " general consumer traps If the customer wants to achieve higher returns, he must actually purchase the Lyoness Business Package for 3000 Swiss francs This is seen as a sign of a pyramid scheme, . Since this acquisition, however, is voluntary, had been no violation of law.

On November 13, 2012 November 27, 2012 and end on April 24, 2013, the Austrian Broadcasting Corporation (ORF ) sent a series of critical reports on Lyoness ' business model. On August 19, 2013, the South African television station CNBCAfrica.com beamed as from a critical article in which it comes to accusations of hidden pyramid scheme ( Ponzi Scheme). End of August 2013 brought the public television broadcaster Rundfunk Berlin -Brandenburg as part of the series 'was' a critical article about the controversial shopping community and their promotional events in Germany.

In a self- appointed by Lyoness and published in September 2013 report, Peter Lewisch, a professor at the Institute of Criminal Law and Criminology at the University of Vienna, found that it was not a question a ponzi scheme within the meaning of the Austrian Criminal Code.

In Austria in 2011, despite a partially adjusted method is the main charge of " financial misappropriation " in the form of "illegal profit forecast system " or " pyramid -like structure pyramid scheme " still upright. The Regional Court of Krems an der Donau came in a verdict to the conclusion that the business model of Lyoness is a Ponzi scheme so similar that the contracts between the company and the business customers in question were void. The judgment became final, Lyoness opted not to appeal. As of January 31, 2014 corruption prosecutor in Austria currently still determined to Lyoness. " It is further determined. The procedure is still pending, "said senior public prosecutor, Carmen Prior