This is a letter written by a LipSense distributor's husband (who was studying law) designed to be sent to anyone who suggests that SeneGence is a pyramid scheme. It is not an official SeneGence document, but it was widely applauded, and gives an indication of their views and approach. Thank you to the person who submitted this to us.
PS The company is SeneGence, not LipSense 🙄 LipSense is just one of their products.
I am contacting you as a result of your comments on social media. This will be my only warning regarding your conduct. You are entitled to your personal opinion, however where your comments cross the line into defamatory conduct, let me assure you that I will apply the full weight of the law against you to protect my livelihood.
Let me clarify some points very simply for you:
(1) Pyramid Schemes are governed under the Competition and Consumer Act 2010. You can find a copy at: https://www.legislation.gov.au/Details/C2013C00620/Html/Volume3#Toc368657587
(2) An appropriate course of action if you wish to allege that Lipsense or its distributors are part of a scheme that constitutes a pyramid scheme under the Act, the governing body is the ACCC. They have their guide to Pyramid Schemes at https://www.accc.gov.au/publications/advertising-selling/advertising-and-selling-guide/other-prohibited-sales-practices/pyramid-schemes and are contactable on 1300 302 502
(3) If you seek any legal advice (even free basic advice) you will quickly discern that the Lipsense business model does not in any way reflect that of a Pyramid Scheme. It is a simple referral system used by millions of businesses worldwide.
(4) Now, that being established (don’t take my word for it: feel free to conduct your own enquiries), you need to be very careful in regards to defamatory conduct. Special recognition is afforded to business reputations in relation to discrimination legislation and case law. Furthermore there is no distinction in Australian law between “slander” (essentially oral defamation) and “libel”, (essentially written defamation) [see: Defamation Act 2005 NSW].
There is NO necessity to show “special” or pecuniary damage in order to sue for slander. Defamation in relation to a person's trade, profession or business was considered particularly serious, and the courts presume that damage had been suffered unless proven otherwise
(5) I have no personal issue with you, however if you cross the line, even slightly, by making accusations about my conduct or the conduct of others within Lipsense, be prepared to face court for injunction and compensation proceedings. I will not have my livelihood threatened by anyone who makes uninformed, defamatory comments. I have it on excellent legal authority that, in the highly likely event that I was successful in proceedings against any such person, that their assets (house, car, boat, bak account) would be at risk following any judgement against them. Furthermore, if such judgement was over $5,000 and they could not pay, I would exercise my legal option to force them into bankruptcy.
I hope you understand that I am not intending to be threatening, but I must make myself absolutely crystal clear at this point to you or anyone conducting themselves in a similar manner. I trust this brings the matter to a close.
Lip sense Consultant