Dáil Éireann díospóireacht -
Wednesday, 20 Mar 2002

Vol. 550 No. 4

Written Answers. - Pyramid Selling.

Pat Carey

Ceist:

116 Mr. P. Carey asked the Tánaiste and Minister for Enterprise, Trade and Employment if legislation exists whereby organisations (details supplied) can be debarred from operating their pyramid type activity; and if she will make a statement on the matter. [8754/02]

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

The activity to which the Deputy refers is often called "gifting", which has 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 such "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.

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. We are, however, still exploring the legislative option as well as administrative steps which might be taken.

One of the options which I intend to explore 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 meanwhile I repeat my previous warnings that people should be extremely cautious in investing their money in schemes which appear to be too good to be true.