The Federal Court in Perth has declared by consent that Unified Interactive Pty Ltd participated in an illegal pyramid selling scheme known as the 1Cellnet Scheme.

The court found that Unified's involvement in the discount telephone call pyramid scheme contravened section 65AAC of the Trade Practices Act 1974.

The court also made orders restraining Unified from establishing, promoting, taking part in or otherwise participating in, or inducing any person to establish, promote, take part in or otherwise participate in the 1Cellnet Scheme, or any similar scheme.  Similar restraining orders were made in May 2005 against 1Cellnet LLC.

Justice Nicholson's orders were made with consent of Unified's administrators, which were appointed last month. The orders made reflect those sought by the Australian Competition and Consumer Commission in its case against Unified.

The ACCC began proceedings in the Federal Court in Perth on 16 August 2004 against 1Cellnet, Unified and two individuals, for alleged breaches of the pyramid selling scheme provisions of the Trade Practices Act 1974.

The ACCC alleged that the parties participated in, promoted, induced or attempted to induce, persons to take part in an illegal pyramid scheme.

The orders do not in any way affect or relate to the remaining two individuals, both of whom are continuing to contest the proceedings.