Consumer Protection Act 2007

• Permanent Page URL

Indictable offence: participating in, establishing, operating or promoting pyramid promotional schemes.

65.— (1) A person shall not—

(a) establish, operate or promote a pyramid promotional scheme,

(b) knowingly participate in such a scheme, or

(c) induce or attempt to induce another person to participate in such a scheme.

(2) A person who contravenes subsection (1) commits an offence.

(3) In proceedings for an offence under this section or for a prohibition order under section 71 , it shall not be necessary for the prosecution or the applicant, as the case may be, to prove—

(a) that the opportunity to receive compensation was a legally enforceable right,

(b) that the consideration or gift given, as the case may be, was given within the State,

(c) that giving consideration or a gift was the only requirement a person had to satisfy in order to—

(i) participate or be eligible to participate in the scheme, or

(ii) be eligible or have opportunity to receive compensation under the scheme,

(d) that any compensation received was received within the State,

(e) that any opportunity to receive compensation was to be a receipt of such compensation within the State, or

(f) that any arrangements under the scheme were recorded in writing.

(4) If, in proceedings for an offence under this section or for a prohibition order under section 71 , the alleged pyramid promotional scheme involves the supply of a product, then the following may be considered (among other things) in determining whether the opportunity to receive compensation is derived primarily from the introduction of other persons into the scheme:

(a) in respect of a promotion of the scheme, the emphasis given to a participant’s entitlement to the product, as compared to the emphasis given to compensation derived from the introduction of other persons into the scheme;

(b) the extent to which the consideration given bears a reasonable relationship to the product, by reference to the price of the same or a comparable product available elsewhere.

(5) A person guilty of an offence under this section is liable on conviction on indictment to the fines and penalties provided in Chapter 4 of Part 5 .