Company: INVUP
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001493152-25-022223
Chunk: 30

Company: Investview, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 4
Chunk 30
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 our direct selling business model is in material compliance with applicable legal standards, direct selling programs
similar to ours and others within the industry, in general, have periodically been the target of regulatory scrutiny by federal, state,
and local governmental agencies in the United States and foreign countries, including the FTC. These laws and regulations are generally
intended to prevent fraudulent or deceptive schemes, often referred to as “pyramid” schemes, which compensate participants
primarily for recruiting additional participants without significant emphasis on product sales, whereas the more successful direct selling
business models have and emphasize sales of products and services. The regulatory requirements concerning direct selling programs do
not include “bright line” rules and are inherently fact-based and, thus, we are subject to the risk that these regulations
or the enforcement or interpretation of these regulations by regulators or courts can change. The adoption of new regulations, or changes
in the interpretations or enforcement of existing regulations, may result in significant compliance costs or require us to change or
cease aspects of our network marketing program. In addition, the ambiguity surrounding these regulations can also affect the public perception
of our business. 

In
the normal course of operations, we have periodically received inquiries from foreign regulators relative to matters of this nature.
In that regard, since March 2025 we have been responding to such an inquiry from in Poland’s Office of Competition and Consumer
Protection (“UOKiK”) as it has instituted formal proceedings against iGenius alleging that iGenius is not a bona fide financial
education platform and is instead operating a pyramid scheme that is focused more on the recruitment of new members and not the sale
or use of the underlying products or services being offered. By Polish statute, UOKiK is permitted to impose a fine of up to 3% of iGenius’
revenue in the year preceding the imposition of the penalty and/or be required to modify or suspend certain or a material portion of
our operations in Poland. 

Based
on our analysis of the applicable legal standards, and the tracking of our sales within Poland in which the predominant portion of our
sales consist of membership sales driven by our members, we believe that the iGenius direct selling business operating within Poland
complies with all applicable legal standards and we disagree with any claims to the contrary. Towards that end, we have retained Polish
counsel to vigorously defend us in the proceeding with the UOKiK. Despite our strong belief in our position, should we not succeed in
our defense