THE International ATTM Card Scheme marketed and promoted by World Netsafe Pty Ltd and Terence Butler has been ruled an illegal pyramid and referral selling scheme by the Federal Court, Brisbane.
In litigation initiated by the Australian Competition and Consumer Commission, the court has further confirmed that the promoters misled or deceived participants into joining the scheme in a variety of ways.
During 1999 and 2000, World Netsafe and Terence Butler promoted the World Netsafe ATTM Card Scheme at public meetings, through promotional materials, on the Internet World Wide Web and by email throughout Australia and overseas.
World Netsafe and Terence Butler claimed that the ATTM Card allowed members to create a World Wide business that could generate lifelong residual income, 24 hours a day, seven days a week, from five different streams of income, without the member leaving his or her home.
Thousands of consumers paid $2,389 to join the ATTM Card Scheme. Justice Spender made mention of evidence which demonstrated that World Netsafe and Terence Butler had received more than $4 million in payments in connection with the scheme as at December 1999.
After hearing the evidence put forward by the ACCC, the Federal Court ordered that within 28 days, World Netsafe and Terence Butler return money to members who paid to take part in the scheme.
This case exemplifies the need to educate the general public to beware of scams. The promotion of pyramid type schemes on the Internet in particular, has been of growing concern to the ACCC and other consumer protection agencies throughout the world over the last few years.
Modern technology, and in particular the Internet, allows pyramid recruiters to build these schemes via direct access to consumers worldwide.
Justice Spender stated the scheme was a “highly offensive” and “blatant’ pyramid and referral selling scheme.
The court ordered that World Netsafe and Terence Butler be restrained from carrying on the ATTM Card Scheme or any other similar scheme.
This case is part of the ACCC’s work to address consumer protection issues on a global basis. The scheme was marketed outside of Australia to people in other countries as well.
* Professor Allan Fels is chairman of the Australian Competition and Consumer Commission
