Watchdog goes after pyramid scheme

The Australian Competition and Consumer Commission has begun proceedings in the Federal Court in Perth against a company that has set up an alleged pyramid scheme.

The ACCC has begun the proceedings against Cosic Holdings and its director John Cosic for allegedly breaking provisions detailed in the Trade Practices Act.

The specific allegations refer to an alleged pyramid scheme known as “Emerald Passport”, which the ACCC accuses Cosic of being “knowingly concerned” in.

The scheme, the ACCC alleges, promoted an opportunity for users to sell self-help products after making an annual payment to “Emerald Passport”. The company would then promise further payments after users introduced new members to the scheme.

Cosic Holdings allegedly took part in the scheme by setting up or operating websites that related to Emerald Passport, and printed promotional material, arranged internet advertising and received payments from participants.

The ACCC will seek declarations, injunctions, corrective notices and costs in the Federal Court, and will also request an order that Cosic must attend a seminar on trade practices compliance.

The case will be heard in a directions hearing on 2 June.