Consumer Protection Act 2007

65.

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 .

Annotations

Editorial Notes:

E55

Offence under section included in definition of “relevant offence” for purposes of Criminal Justice Act 2011 (22/2011) (9.08.2011) by Criminal Justice Act 2011 (22/2011), s. 3 and sch. 1, S.I. No. 411 of 2011.