THE SKY Biz 2000 scheme has been singled out by the Ministry of Fair Trading as possibly being in breach of WA’s Fair Trading Act.
Sky Biz 2000 is a multilevel marketing scheme promoting the sale of web sites on the Internet.
“I am concerned the business side of the scheme may breach WA’s Fair Trading Act,” Commissioner for Fair Trading Patrick Walker said.
“The business plan promises bonuses for signing up new buyers when buyers find new customers.
“Sky Biz’s marketing may be ‘referral selling’ which is prohibited by the Act.”
By definition, referral selling is when part of the inducement to buy is that, only after making the purchase, the customer can earn commissions through introducing other buyers – who can then do the same.
Those involved in such a scheme may not be aware they expose themselves to potential legal liability if things go wrong.
“People who simply buy and use the package and do not try to sell it are unlikely to contravene the Act,” Mr Walker said.
“However, people promoting Sky Biz 2000 to others should seek independent legal advice about the legal and financial risks involved,” he said.
