Australian Capital Territory Consolidated Acts

FAIR TRADING ACT 1992 - SECT 25C

    (1)     In this division:

"pyramid selling scheme" means a scheme with both the following characteristics:

        (a)     to take part in the scheme, some or all new participants must make a payment (a participation payment ) to another participant or participants in the scheme;

        (b)     the participation payments are entirely or substantially induced by the prospect held out to new participants that they will be entitled to a payment (a recruitment payment ) in relation to the introduction to the scheme of further participants.

    (2)     A scheme may be a pyramid selling scheme—

        (a)     no matter who holds out to new participants the prospect of entitlement to recruitment payments; and

        (b)     no matter who is to make recruitment payments to new participants; and

        (c)     no matter who is to make introductions to the scheme of further new participants.

    (3)     A scheme may be a pyramid selling scheme even if it has any or all of the following characteristics:

        (a)     the participation payments may (or must) be made after the new participants begin to take part in the scheme;

        (b)     making a participation payment is not the only requirement for taking part in the scheme;

        (c)     the holding out of the prospect of entitlement to recruitment payments does not give any new participant a legally enforceable right;

        (d)     arrangements for the scheme are not recorded in writing (whether entirely or partly);

        (e)     the scheme involves the marketing of goods or services (or both).