Vol. 541 No. 5
147 Mr. Timmins asked the Tánaiste and Minister for Enterprise, Trade and Employment if she is concerned at the re-emergence of pyramid selling as an instrument of fraud; and the steps she will take to discourage the process. [23057/01]
149 Dr. Upton asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will consider amending the Pyramid Selling Act, 1980, to gifting schemes; and if she will make a statement on the matter. [23200/01]
I propose to take Questions Nos. 147 and 149 together.
I am aware of a recent case in County Dublin involving an alleged case of pyramid selling and a robbery and I understand that the local Garda Síochána are investigating the case.
The Pyramid Selling Act, 1980, was introduced to deal with pyramid or multilevel selling as it is sometimes called. The Act defines in some detail what is called a scheme. One of the elements which must be present in a selling scheme before it can be regarded as pyramid selling is that goods or services or both are to be provided by the promoter. The Act makes it an offence for a promoter or a participant in a scheme to induce or attempt to induce people to join a scheme. It is also an offence for a promoter or participant in a scheme to receive payment from participants by holding out that those participants will receive payments or benefits from introducing other persons into the scheme.
I urge people to be vigilant when considering investing their money and if they feel that a scheme is one that is prohibited under the Pyramid Selling Act, 1980, they should contact the Garda Síochána who are the enforcing body for the Act.
Regarding the issue of whether so-called gifting schemes are covered by the Pyramid Selling Act, 1980, my Department is at present in consultation with the Office of the Attorney General regarding the matter. I understand that the Garda are of the view that such schemes are not covered by the 1980 Act.
