asked the Minister for Industry and Commerce the action, if any, that has been taken against the practice of pyramid selling; the number of complaints received by him in relation to the practice; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Pyramid Selling.
12.
As I have explained in replies to previous questions legislation which would regulate pyramid-selling has reached an advanced stage, but it has proved extremely difficult to devise a definition of pyramid selling which would not apply also to certain other forms of activity which are accepted as perfectly legitimate. However, the abuse of pyramid-selling appears to have almost disappeared. I believe that publicity has been more effective than legislation would have been. It is of interest that whereas there were five written complaints in 1974, only four altogether were received in the years 1975, 1976 and 1977 to date. I shall continue to monitor developments.
Can we expect the legislation during the lifetime of this Dáil or will it be left to Fianna Fáil to introduce?
It is implicit in my reply that, given the constraints that exist in relation to the introduction of legislation, both in terms of drafting and of parliamentary time, the best use of time might not be effected by introducing legislation to curb a practice which in the first place people become involved in voluntarily and of which they can be warned adequately by the type of publicity which, no doubt the Deputy's question will be given.
However, I would avail of this opportunity to warn people against becoming involved in this type of operation in which, initially, they are invited to participate in a selling operation but in which it transpires ultimately that in practice their commitment is not to sell the goods concerned but to sell the right to sell the goods to somebody else. This procedure continues in a vicious circle with one person "conning" another in the taking over of an agency. Obviously this type of operation can involve people in significant financial loss. I trust this warning will serve to make people avoid this practice but should any evidence come to light to indicate a deterioration in the situation, the question of legislation could be raised again.
I thank the Parliamentary Secretary for that comprehensive reply but would point out that the fact that complaints have not been sent directly to the Department by people who have been "conned" by these crooks does not mean that the practice does not exist. I am aware that the company operating under the name of Golden Products are alive and well and living in Garville Avenue or some such place. They are operating in a comprehensive way. Their diseased tentacles are spreading themselves to the north, south, east and west of the country.
May we have a question, please?
They are conducting a real "con" job——
Order. I did not draw up the Rules for Question Time. The Deputy must proceed by way of supplementary question.
——on people who do not understand what they are becoming involved in. Is the Parliamentary Secretary aware that the practice known as pyramid selling has been banned in Britain and would he have a look at the legislation which is now extant in Britain in relation to this evil?
I am aware that the practice has been banned in Britain. In the interests of accuracy I should tell the Deputy that so far in 1977 we have received one complaint in regard to this practice. I would appeal to anybody who is suspicious about any selling operation in which he or she may be thinking of becoming involved, to get in touch first with the Department so that we might put the person wise to the matter.
(Dublin Central): Has the Parliamentary Secretary any figures to indicate the losses incurred by people who have invested in this sort of selling?
I have no such information and it is unlikely that we would receive such information as people are not likely to publicise the fact that they have been taken in.
(Dublin Central): I know of a case in which the person concerned lost £100.