A company promoting a pyramid selling scheme has settled Federal Court proceedings brought by the Australian Competition and Consumer Commission.

"The proceedings were against My Life Corporation Pty Ltd (My Life) and its chief executive officer, Mr Ken Stockley," ACCC Chairman, Professor Allan Fels, said today.

"My Life promoted two schemes which the ACCC claimed were in contravention of the Trade Practices Act 1974. The first scheme was the My Life Surviving 2000 Business Plan (S Plan) and was promoted from around 1991, the second was the Integrated Charity Plan (ICP) and was promoted from around 1994.

"Up to 60,000 consumers may have been involved to some extent in the S Plan, and up to 9,000 in the ICP."

The ACCC alleged in its statement of claim that My Life, by promoting the S Plan and the ICP, was contravening the referral and pyramid selling provisions of the Act notwithstanding that part of the schemes concerned the sale of the nutritional products 'Biogen' and 'Biolite'. My Life represented to prospective members that they would receive money in return for assisting My Life to recruit other people into the schemes and that a portion of the money new members paid to join the scheme would be paid to the participant who introduced the new member.

The ACCC also alleged that as a director in My Life, Mr Stockley was knowingly concerned in the conduct of the company and therefore attracted liability under the Act.

My Life and Mr Stockley had already ceased the promotion and operation of the schemes as a result of the Commissions actions.

"My Life has agreed to consent injunctions restraining it from, among other things:

(i) further promoting either of the two plans or any scheme with the same elements as those two plans;

(ii) promoting, selling or supplying Biogen or Biolites or any other My Life product in connection with either of the two plans; and

(iii) representing that the purchase of any My Life products will result in contributions of products or donation to charity.

"Mr Stockley agreed to consent injunctions restraining him from being directly or indirectly knowingly concerned in or a party to the conduct which My Life is restrained from engaging in or any similar conduct of any other corporation."

My Life and Mr Stockley have agreed to pay the Commissions legal costs.

The ACCC understands that a number of consumers have lost money as a result of their participation in the schemes.

"This matter serves as a warning to promoters and potential participants of other schemes such as Joker 88 and others. Promotion and participation in pyramid selling schemes is illegal and the ACCC will take what action it deems necessary to have the conduct stopped. This can be a costly exercise for those involved."