1980 Ed.]
Pyramid Selling Prohibition
[CAP. 355
1
CHAPTER 355
PYRAMID SELLING PROHIBITION
To prohibit the promotion of pyramid selling schemes and to provide for connected matters.
Originally 25 of 1980.
[1 September 1980.]
L.N. 196/80.
1. This Ordinance may be cited as the Pyramid Selling Prohibition Ordinance.
Short title.
2. In this Ordinance, unless the context otherwise requires
Interpretation.
“goods” includes all chattels personal and things in action;
"promote" means establish, advertise, manage or assist in the management of a pyramid selling scheme;
"pyramid selling scheme" means a scheme whereby-
(a) a participant in the scheme is granted a licence or right to introduce another participant into the scheme who is also granted such licence or right and who may further extend the chain of persons who are granted such licence or right, notwithstanding that there may be a limitation to the number of participants or that there may be any further conditions affecting eligibility for such licence or right; and
(b) a participant receives a reward on, or at any time after, the introduction into the scheme by him of another participant which reward is based, whether wholly or in part, otherwise than on the fair market value of goods or services actually sold by him or by or through that other participant;
"reward" includes refund, commission, discount or allowance but does not include payment for sales demonstration equipment and materials supplied at not more than their fair market value and not resold.
3. Any person who knowingly promotes a pyramid selling scheme commits an offence and is liable on conviction upon indictment to a fine of $100,000 and to imprisonment for 3 years.
Offence of promoting a pyramid selling scheme.
4. (1) Where an offence under this Ordinance has been committed by a body corporate or member of a body unincorporate, any person who at the time of the offence-
(a) in the case of a body corporate, was a director, secretary, principal officer or manager of that body corporate; or
(b) in the case of a member of a body unincorporate, was a partner or office holder in or a member or manager of that body unincorporate,
Liability of directors, partners etc.