ACCC wins in telco pyramid selling case

by louabbott on March 23, 2005

ABC – Published March 23, 2005

The Australian Competition and Consumer Commission (ACCC) has moved closer to stopping a new American player on the Australian telecommunications scene by successfully proving it is a pyramid selling scheme.

The Federal Court in Adelaide will now look at stopping Australian Communications Network (ACN) from establishing phone services around the country.

Executives from the United States travelled to Australia early last year to help set up ACN, a wholly owned subsidiary of American Communications Network.

ACN was planning to offer line connections, local, national and international calls, as well as mobile calls.

Its multi-level marketing structure sparked concern from the ACCC, which took action in the Federal Court.

Today Justice Brad Selway ruled the set up for ACN was a pyramid selling scheme and breached the Trade Practices Act.

He adjourned the case to hear submission about what orders he should make against ACN.

Read the entire article at ABC News Online

Dissenter opinion at Capt’n Arbyte’s

Watch our Free Video Presentation on Pyramid Schemes

Also, read our company overview:  ACN Facts, News and Review

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