Company: INVUP
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001641172-25-010230
Chunk: 116

Company: Investview, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 116
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 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  10% of iGenius’ revenue in the year
preceding the imposition of the penalty.

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 of the matter, we
could, among other things: be subject to financial fines and penalties; be required to modify or suspend certain or a material portion
of our operations in Poland; and become exposed to similar claims from other European regulators, which itself could cause a cascading
and similar adverse impact on our operations in Europe, all of which could have a materially adverse impact on the Company. It is still
too early in the proceedings for us to draw a likely conclusion on the outcome of the matter. 

We have
recently had to respond to allegations