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Dáil Éireann díospóireacht -
Tuesday, 10 Dec 2002

Vol. 559 No. 1

Written Answers. - Pyramid Selling.

Richard Bruton

Ceist:

139 Mr. R. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the various pyramid systems designed to trap people into parting with money on the promise of subsequent benefits; and the measures she has in place to try and stamp out such arrangements. [25450/02]

The Pyramid Selling Act, 1980, makes it an offence to induce anyone to become a participant in a pyramid selling scheme. The Act is enforced by the Garda bureau of fraud investigation.

The Deputy may be referring to so-called "gifting schemes" which are not covered by the Pyramid Selling Act, 1980. I am satisfied that pyramid selling legislation is not an appropriate model for dealing with that issue, nor would it be effective. Gifting schemes are in effect a form of gambling although the Department of Justice, Equality and Law Reform is of the view that they do not come within the definitions contained in gambling legislation.
In the circumstances I believe that the best remedy is common sense. It is clear that some participants in such schemes inevitably lose their money. People are entitled to use their money as they please but given the publicity that has attached to this issue, they cannot be in any doubt about the risk they are taking if they participate in these schemes. If a scheme sounds too good to be true it is probably just that – too good to be true.
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