I thank you for giving me permission to raise this important matter and the Minister of State at the Department of Industry and Commerce with responsibility for trade and related matters for coming into the House to listen to the case I have to make.
I have been motivated to raise this matter because it has been drawn to my attention by a number of people in my constituency who are, unfortunately, unemployed and who have been subjected to the overtures of the company in question. They are called National Safety Association but do not deserve any credit for ascribing that name to themselves. Like the rest of their activities it is probably grossly misleading.
They are involved primarily in the sale and distribution of a costly water filter kit of dubious value. If there was ever a product for which there should be no demand in Ireland it is this item which is designed to improve the quality of water used in households given that we often boast that we have a clean environment and that the quality of our water is second to none. I do not know why we should need water filters but these items represent a source of vast wealth and profit for the proprietors of the organisation in question, both in Ireland and in America. I should say, however, that it is their method of operation, rather than the product they sell which causes concern.
Their normal approach is to invite potential distributors, who are often people who are unemployed and have received redundancy payments, to a meeting which is usually grandiosely described as a "business evaluation day" in a hotel. I have in front of me a notice which invites people to the Country Club in Portmarnock, which is on the boundaries of my constituency, for a "getting the new person started" seminar. However one must pay a fee if they wish to attend. Among the subjects covered are "structuring for profit" and "trouble shooting", in other words how to deal with the unfortunate and disgruntled customer. The fee for the privilege to attend is £20.
At these seminars people are bombarded with American style persuasion techniques and given so-called examples to show that extraordinary profits, up to £60,000 per annum, can be made by dealing in these water filters. The aim is to entice people to spend their money to buy a stock of these items in the expectation that they will be able to sell them to third parties. For the good reasons I have stated, there is little demand for these filter kits in Ireland with the result that many of those who become involved end up with unsaleable kits on their hands and thousands of pounds of borrowed money lost.
The Director of Consumer Affairs in a recent comment on the operation of these companies said "pyramid companies' profits come not from the final customer but from the people who stock the products — the intermediary or distributor." The public should be protected from the predatory activities of these companies. This is a view that has been expressed also by the Director of Consumer Affairs, and I support and endorse it fully.
Let me say in conclusion that it may well be that the National Safety Association are concentrating on countries such as Ireland because they are coming under intense pressure in their home territory. They have been charged in Wisconsin in the United States with using "misrepresentation about the performance of their filters" and using "claims to attract multi-level distributors." They are reported to be under investigation in a total of 19 US States while in New York they were found to have carried out deceptive business and advertising practices. In Canada, they have been charged with 22 violations of the Canadian competition Act. It is for these reasons that they are now in Ireland exploiting vulnerable people who become victims of the ploy due to the lack of a jobs policy. It is incumbent on the Government, they can take no direct action, to warn the public to be on their guard and not to be taken in by the gloss and the hype of this company.
