Dáil Éireann debate -
Thursday, 21 Mar 2002

Vol. 550 No. 5

Written Answers. - Pyramid Selling.

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

Gifting schemes have some of the characteristics of pyramid selling. Pyramid selling is covered by the Pyramid Selling Act, 1980. However the Office of the Attorney General has considerable doubts as to whether gifting schemes are covered by the Act. The gardaí who enforce the Act take the view that these schemes are not covered by the Act. We are still exploring the legislative option as well as administrative steps which might be taken.

The main difficulty with any legislation seeking to deal with a complex problem of this kind is to steer a course between making very specific provisions which may be circumvented by future developments of the targeted schemes and, on the other hand, catching bona fide arrangements such as savings and spending schemes. One of the options which I am looking at is the possibility of dealing with gifting schemes under gambling legislation. I have asked my officials to explore this possibility with the Department of Justice, Equality and Law Reform. In the meantime I would repeat my previous warnings that people should be extremely cautious in investing their money in schemes which appear too good to be true.