Tasmanian Consolidated Acts Tasmanian Consolidated Acts
(1) A promoter of, or participant in, a trading scheme must not receive, or benefit from, a payment made by a person who is or intends to be a participant in the trading scheme if the person was induced to make the payment because the prospect was held out to that person of receiving payments or other benefits in respect of the introduction of other persons who become participants in the scheme.
Penalty:
In the case of –(a) a body corporate, a fine not exceeding 1 000 penalty units; or
(b) a natural person, a fine not exceeding 200 penalty units.
(2) A promoter of, or participant in, a trading scheme, by holding out to a person the prospect of receiving payments or other benefits in respect of the introduction of other persons who become participants in the scheme, must not induce or attempt to induce that person –
(a) to make a payment to, or for the benefit of, any promoter of, or participant in, the scheme, if that person is a participant in the scheme; or
(b) to become a participant and to make a payment to, or for the benefit of, any promoter of, or participant in, the scheme, if that person is not a participant in the scheme.
Penalty:
In the case of –(a) a body corporate, a fine not exceeding 1 000 penalty units; or
(b) a natural person, a fine not exceeding 200 penalty units.
(3) A person must not promote, or take part in the promotion of, a trading scheme under which –
(a) a payment is made by a participant, or by a person who has applied or been invited to participate, in the scheme, to or for the benefit of a promoter of, or participant in, the scheme; and
(b) the person making the payment was induced to do so by the prospect of receiving payments from other persons who may participate in the scheme.
Penalty:
In the case of –(a) a body corporate, a fine not exceeding 1 000 penalty units; or
(b) a natural person, a fine not exceeding 200 penalty units.
(4) For the purposes of this section –
(a) a payment is made to, or for the benefit of, a person even if the payment is made partly to or for the benefit of that person and partly to or for the benefit of another person; and
(b) a person is induced by a prospect if the prospect forms a substantial part of the inducement; and
(c) a prospect is taken to be held out to a person whether or not it is held out so as to confer on the person a legally enforceable right.
(5) In this section, "trading scheme" means a scheme by which goods or services are provided–
(a) by a promoter of the scheme; and
(b) under transactions made by participants in the scheme, not all of whom are promoters of the scheme.