Northern Territory Consolidated Acts

CONSUMER AFFAIRS AND FAIR TRADING ACT - SECT 60B

(1) A pyramid selling scheme is 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 new participants.

(2) A scheme may be a pyramid selling scheme regardless of:

(a) who holds out to new participants the prospect of entitlement to recruitment payments;

(b) who is to make recruitment payments to new participants; or

(c) 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).