An internet-mall type MLM, Skybiz 2000, has been surrounded by legal controversy for the past several weeks. News reports in Canada have claimed that Skybiz was under investigation by the Royal Canadian Mounted Police (RCMP). Skybiz has denied the story, and claimed that one single Mountie made unsubstantiated allegations. Skybiz is now suing the RCMP for $1.1 million in damages.

However, an Australian news source also claims that Skybiz is the subject of an Australian investigation. A notice on Feb. 29, 2000 from Australia's Ministry of Fair Trading warns consumers:

" 'Sky Biz 2000 is presented as an Internet site for your family or business, and also a multilevel business that can be run from home,' Mr Walker said. 'I am concerned that the business side of the scheme may breach Western Australia’s Fair Trading Act.'

"The business plan promises bonuses for signing up new buyers when those buyers find new customers, and so on. Sky Biz’s marketing may be 'referral selling' that is prohibited by the Fair Trading Act."

The Leader-Post in Regina, Saskatchewan, stated:

"RCMP on Tuesday said in a news release its investigators believe a group of companies operating as the Skynary, Skybiz and Skybiz 2000 multi-level marketing scheme is operating an illegal pyramid scheme in Canada."

A March 8, 2000 article in The Province stated that:

"Police are warning that a Web site recruiting participants under the names Skybiz, Skybiz 2000 and Skynary is an illegal pyramid scheme.

"The RCMP commercial crime unit says it has received a number of calls from people asked to join the scheme, which reportedly involves the buying and selling of Web sites. "

But Skybiz officials, according to e-mails received, are suing and/or threatening to sue anyone who prints anything "negative" about the business.

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