The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court in Perth, Western Australia against 1Cellnet LLC, a company incorporated in Delaware in the USA, for alleged breaches of the pyramid selling scheme provisions of the Trade Practices Act 1974. The ACCC has also instituted proceedings against Unified Interactive Pty Ltd; its director, Mr Bruce Pallister; and an alleged promoter, Mr Shaun Mellet.
The ACCC has alleged that 1Cellnet and Unified Interactive participated in, promoted and induced or attempted to induce persons to take part in an illegal pyramid scheme in contravention of section 65AAC of the Act, and that Mr Pallister and Mr Mellet were knowingly concerned in and/or aided and abetted those contraventions.
The ACCC alleges that 1Cellnet have established and promoted a scheme on the Internet in which participants make a payment to 1Cellnet and are able to earn income from the 1Cellnet Global Bonus Points (GBP) scheme. It is alleged that the payment is induced by the prospect held out to new participants that they will be entitled to payments under and in accordance with the GBP in relation to the introduction to the 1Cellnet scheme of further members.
The ACCC alleges that Unified Interactive, through its director and agent Mr Pallister designed and supplied the scheme to 1Cellnet, promoted the scheme by responding to customer inquiries about the scheme, took part in the scheme by collecting all payments on behalf of 1Cellnet and allowed itself to be held out by 1Cellnet as an accredited licensee and the Australian operational base of 1Cellnet and/or the scheme.
The ACCC alleges that Mr Mellet took part in and promoted the scheme and was knowingly concerned in, and/or a party to 1Cellnet's contraventions.
The ACCC is seeking declarations, injunctions, corrective notices, compliance programs for the companies and the individuals, findings of fact and costs.
A directions hearing for this matter is listed before Justice Nicholson on Wednesday (September 1) at 11.15 a.m. in the Federal Court, Perth.