asked the Minister for Industry, Commerce and Energy when legislation will be introduced to prohibit the practice of pyramid selling with particular reference to the activities of a firm (name supplied).
Written Answers. - Pyramid Selling.
480.
Some years ago companies engaged in pyramid selling were active in this country and an amount of work was done in preparing legislation to deal with the undesirable aspects of this activity. A drafting difficulty was encountered in trying to distinguish clearly between pyramid selling and certain quite acceptable business practices. Unless this problem could be solved, legislation could unintentionally cover quite legitimate forms of trading. As pyramid selling then seemed to die down, the drafting of legislation was not proceeded with.
However, there has recently been some evidence of recrudescence of the activity. I am looking into the matter to see whether revival of plans for legislation would be warranted. In this connection I would invite any members of the public who may have any relevant information to contact me.