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Dáil Éireann debate -
Wednesday, 25 Feb 1976

Vol. 288 No. 5

Ceisteanna—Questions. Oral Answers. - Pyramid Selling.

9.

asked the Minister for Industry and Commerce whether the practice known as pyramid selling has been banned; and, if not, the action, if any, he proposes to take in the matter.

There is no legislation specifically banning pyramid selling. Considerable progress had been made with the preparation of legislation to regulate the practice, but as this legislation has to compete for attention with other desirable legislative proposals, I cannot say how soon it will be brought to a conclusion.

In the meantime I feel sure that most people by now have been alerted to the undesirable practices associated with pyramid selling.

On the question of people being alerted to this practice is the Parliamentary Secretary aware that this group, who call themselves Golden Products, are advertising in the evening newspapers? It is only fair to say that generally the advertising departments of the newspapers have issued instructions to the effect that advertisements should not be accepted from people engaged in this criminal practice. However, some of the ads get through for want of attention or for some other reason. Is the Parliamentary Secretary aware that the type of advertisement I am referring to runs as follows:

In accordance with a long-standing rule, it is not in order to quote at Question Time.

Is the Parliamentary Secretary aware that the firm calling themselves Golden Products are advertising fraudulently in the newspapers and can he tell us if he intends taking any action in the matter? Is he aware, too, that on Wednesday last some 60 people attended a meeting in a south Dublin hotel arranged by this firm or people associated with them, that during the course of that meeting a woman complained that she had been defrauded of £800 while another individual said that he, too, had been defrauded of an amount of money.

This is a very long question.

Yes. You are being very patient with me, a Cheann Comhairle. The matter is of extreme importance which should be ended immediately by the enacting of the necessary legislation. Is the Parliamentary Secretary aware that the individual I have referred to was threatened physically because of his observations and told to leave the place immediately.

The Deputy is seeking to have a debate on the matter. This would not be in order. I have given him a lot of latitude already.

I apologise. Is the Parliamentary Secretary aware that this group of people are conducting so-called seminars in various hotels around the city on a regular basis and can he say what immediate action, if any, he can take to curtail the practice and have it banned as a matter of national and social urgency?

I am glad that the Deputy has placed this information before the House and has given the matter publicity. This affords me an opportunity of saying that anyone who is approached by the firm mentioned or by any firm in similar business should be very careful in their dealings with them and should insist on substantial time for consideration before agreeing to enter into any arrangement. This practice can be brought to a speedy conclusion if people refuse to participate in it. In the first instance people participate voluntarily.

In so far as complaints are concerned, the gardaí in the fraud squad have indicated to us that they had not had any complaints recently of people being defrauded but I should be grateful if the Deputy or his informants would pass immediately to the fraud squad any information they may have. On the face of it, I would imagine that the issuing of a physical threat would constitute an offence, quite independently of pyramid selling. I would urge particularly the Deputy's associate who was the subject of a physical threat to bring this matter to the attention of the Garda.

Question No. 10.

You have been very good to me but perhaps you would allow a final supplementary.

Flattery will get the Deputy nowhere.

Regarding the last part of the Parliamentary Secretary's reply he will find, if he contacts officials of the Department, that no later than yesterday an individual was in touch with them complaining about this practice and about the loss of money which he suffered from being involved in pyramid selling. Arising out of inquiries to the Department he was informed that I had tabled a Parliamentary Question on the subject.

I had not that information.

I appreciate that the Parliamentary Secretary may not have it.

There have been a few complaints generally about the practice.

There have been a lot of complaints about it.

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