Consumer Protection Act 2007

PART 4

Pyramid Promotional Schemes

64.

Definition ( Part 4).

64.— (1) In this Part, “pyramid promotional scheme” means a scheme by which a person gives consideration in money or money’s worth, or gives a gift in money or money’s worth, for an opportunity to receive compensation derived primarily from the introduction of other persons into the scheme rather than from the supply or consumption of a product.

(2) The following apply in respect of subsection (1):

( a) the opportunity to receive compensation need not be limited to the person’s introduction of other persons into the scheme but may include their introduction by other persons;

( b) the scheme may but need not involve the supply of a product.