Pyramid Selling: Regulation
Commons · Question 13973 · Tabled 12 Nov 2024 · Department for Business and Trade · Official record
Answered 18 Nov 2024
Question
Asked by Andrew Cooper
To ask the Secretary of State for Business and Trade, which regulations govern multi-level marketing schemes; and if he will make an assessment of the effectiveness of the regulatory framework of such schemes.
Answer
Answered by Justin Madders, 18 Nov 2024
Although multi-level schemes are not illegal, it is a criminal offence to persuade someone to make a payment to a scheme by promising benefits from getting other people to join the same scheme (Fair Trading Act 1973 section 120(3)). Also, the Consumer Pro...