Commerce Commission probes SkyBiz

The Commerce Commission has launched an formal investigation into Web-page selling scheme SkyBiz 2000, the commission's manager of fair trading, Rachel Leamy has confirmed.

The Commerce Commission has launched an formal investigation into Web-page selling scheme SkyBiz 2000, the commission’s manager of fair trading, Rachel Leamy has confirmed. Last month, the commission sent warning letters to people involved in SkyBiz 2000, a scheme in which people are invited to buy a home page on a portal (www.skybiz.com) and to then recruit other buyers (see story). The original buyer receives a share of money paid by those people who subsequently join the scheme through their involvement. The commission is investigating whether this amounts to pyramid selling, which is illegal. Supporters of the scheme suggest it is not pyramid selling because a real commodity is being traded. Leamy declines to say what led the commission to scale up its response to the scheme. The investigation should be concluded within “a few months”, she says.

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