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Dáil Éireann debate -
Tuesday, 26 Jun 1973

Vol. 266 No. 8

Ceisteanna—Questions. Oral Answers. - Pyramid Selling.

36.

asked the Minister for Industry and Commerce if he will give an undertaking similar to that given to the British House of Lords by Lord Drumalbyn that he would bring and keep under control the objectionable features of pyramid selling.

I will certainly bring—and keep—under control the objectionable features of pyramid selling, should I find it necessary to do so. I have requested the Examiner of Restrictive Practices to investigate this practice, and I am awaiting a report.

Is the Minister stating that pyramid selling is in operation in Ireland at the present time?

I received some information that a small amount of pyramid selling has occurred in Ireland, and if it is on a sufficient scale and if it is continuing we shall certainly move against it.

The Minister would not find it objectionable in its present form?

I find any pyramid selling objectionable, but if the incidence of pyramid selling is a transient one and if sufficient power exists under restrictive practices legislation to deal with it, then I do not see the need for new legislation. However, I am having it monitored continuously and I am getting a report from the Examiner of Restrictive Practices on it, which I expect in the near future.

Could I ask the Minister how many complaints he has had in his Department from people who have been conned by pyramid sellers?

It seems to be a separate question.

I do not know the number, but a significant number. Apart from the complaints received, on their own initiative my Department have been monitoring the activities of the pyramid sellers.

Could I ask the Minister to elaborate a little further on how pyramid selling comes within the terms of restrictive practice legislation?

I cannot give the Deputy a great deal of detail on that, but I asked in the Department if there was any existing legislation whereby we could control this practice. It was looked at and, while I did not get an answer, there was at least the possibility that sufficient powers existed under the Restrictive Practices Act, 1972, and this is one of the things on which the Examiner will report to me.

Is the Minister aware that ordinary housewives and, indeed, corporation tenants, have been out of pocket many thousands of pounds due to being conned through this type of selling?

I am indeed aware of this. The situation is that from the time of the previous Government and the last time I was asked a question on this, strong disapproval of pyramid selling was expressed on all sides of the House, and expressed in the media also. The British have had the experience that they promised legislation and now they are in difficulties drafting it and may have to fall back to the situation in which we are. While it is extremely objectionable, in my view the distinction between pyramid selling, on the one hand, and what is a perfectly legitimate form of selling, on the other, is not a difficult one to draw in real life but it is very difficult to draft legislation which does not penalise people who ought to have a chance to go on making a little money as well.

May I ask one final supplementary?

Very good. Let it be final.

Is the Minister aware that there is an extradition order being sought against "Mr. Pyramid Selling" by the English Government? Is this man involved in the Irish market?

I do not know the answer to that.

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