ACCC institutes proceedings against 1Cellnet LLC, Unified Interactive

The Australian Competition and Consumer Commission (ACCC) has alleged US-based 1Cellnet LLC is in breach of pyramid selling scheme provisions. Proceedings have also been instituted against Unified Interactive Pty Ltd, its director Bruce Pallister and an alleged promoter Shaun Mellet.

The ACCC asserts the companies participated in, promoted and induced or attempted to induce persons to take part in an illegal pyramid scheme in contravention of the Trade Practices Act 1974, and that Pallister and Mellet were knowingly concerned in these contraventions.

It is alleged that 1Cellnet, which established and promoted the scheme on the internet, lured participants with the prospect of earning an income from the 1Cellnet Global Bonus (GBP) scheme following an initial payment to the company. Participants were also entitled to payments if the 1Cellnet scheme was introduced to further members.

The ACCC alleges that Unified Interactive designed, supplied and promoted the scheme, and also collected payments on behalf of 1Cellnet.

The ACCC is seeking declarations, injunctions, corrective notices and compliance programs. A directions hearing is listed for 1 September in the Federal Court, Perth.