Dáil Éireann Debate, Wednesday - 31 January 2007
1123 Mr. J. O’Keeffe asked the Minister for Enterprise, Trade and Employment the position in relation to pyramid schemes; the law relating thereto; if further changes in the law are necessary; and if he will make a statement on the matter. [2846/07]
Amharc ar fhreagraThe current law on pyramid selling is the Pyramid Selling Act, 1980. The Act defines pyramid schemes and makes it an offence to induce anyone to become a member of such a scheme.
This law will, however, be updated significantly by the provisions of the new Consumer Protection Bill, 2007 which will be debated in the Oireachtas over coming weeks. This Bill will establish the new National Consumer Agency as well as transposing the Unfair Commercial Practices Directive (Directive 2005/29/EC). The Bill contains a list of prohibited practices including that of "establishing, operating or promoting a pyramid scheme".
The Bill redefines pyramid schemes and makes it an offence to promote or participate in a scheme. The offence is punishable by fines of up to €150,000 or imprisonment for a period up to 5 years. Furthermore, the National Consumer Agency or a public body prescribed for the purpose or a private individual can apply to the Courts for an order to prohibit a trader or a person from engaging in pyramid schemes.
I am confident that the new legislation will provide a better protection for the consumer against this type of activity.
