SkyBiz 2000 Warning from Ministry of Fair Trading
(link to Ministry Website)

29 February 2000

WEBSITE WARNING

Commissioner for Fair Trading, Patrick Walker, today warned that a multilevel marketing scheme promoting the sale of Websites on the Internet may not comply with fair trading laws.

"Sky Biz 2000 is presented as an Internet site for your family or business, and also a multilevel business that can be run from home," Mr Walker said. "I am concerned that the business side of the scheme may breach Western Australia’s Fair Trading Act."

"The business plan promises bonuses for signing up new buyers when those buyers find new customers, and so on. Sky Biz’s marketing may be "referral selling" that is prohibited by the Fair Trading Act.

Referral selling occurs when part of the inducement to buy something is that, only after making the purchase, the customer can earn commissions through introducing other buyers - who can then do the same.

People caught up in a referral selling scheme may not be aware that if things go wrong, they expose themselves to potential legal liability.

"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".

For general enquiries: Ministry of Fair Trading Call Centre - 1300 30 40 54