TNAG-0990-FCO40-1209-Allegations-of-bribery-and-corruption-in-Hong-Kong-1980 — Page 20

PRINTED AND PUBLISHED BY D. R. RICK, GOVERNMENT PRINTER AT THE GOVERNMENT PRESS, JAVA ROAD, HONG KONG

PYRAMID SELLING PROHIBITION

Ord. No. 25/80

A103

HONG KONG

No. 25 OF 1980

I assent.

L.S.

MURRAY MACLEHOSE,

Governor.

26 June 1980.

An Ordinance to prohibit the promotion of pyramid selling schemes and

to provide for connected matters.

[

1

Enacted by the Governor of Hong Kong, with the advice and consent of the Legislative Council thereof.

1. This Ordinance may be cited as the Pyramid Selling Prohibition Short title and Ordinance 1980 and shall come into operation on a day to be appointed commencement. by the Governor by notice in the Gazette.

2. In this Ordinance, unless the context otherwise requires— "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.

Interpretation.

3. Any person who knowingly promotes a pyramid selling scheme Offence of commits an offence and is liable on conviction upon indictment to a fine promoting of $100,000 and to imprisonment for 3 years.

a pyramid selling scheme.

4. (1) Where an offence under this Ordinance has been committed Liability of by a body corporate or member of a body unincorporate, any person who directors, 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,

or who, in either case, was acting or purporting to act in any such capacity commits a like offence.

partners etc.