Jim O'Keeffe (Cork South West, Fine Gael)
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Question 760: To ask the Minister for Enterprise, Trade and Employment if his attention has been drawn to the widespread concerns in the Cork and Kerry areas arising from the operation of pyramid gifting progression schemes; the information available to him regarding the operation of such schemes; his views on whether the Pyramid Selling Act 1980 needs to be updated; and his proposals in this regard. [1789/06]

Micheál Martin (Cork South Central, Fianna Fail)
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I am aware from media reports that a certain scheme or schemes, involving people "gifting" sums of money to other people in the expectation that they would receive multiples of the original sum involved, has been operating in the Cork and Kerry area. I understand the Garda Síochána in County Cork is investigating this scheme under the Pyramid Selling Act 1980. This legislation prohibits pyramid selling schemes and also prohibits the inducement of people to join such schemes. The Act applies to goods and services and there may be some doubt as to whether it applies to situations where no goods or services are involved. It is ultimately for the courts to decide whether an infringement has taken place.

The Unfair Commercial Practices Directive, 2005/29/EC, which was adopted in May 2005, increases protection for consumers across the EU by outlawing certain practices. One of the practices that will be outlawed is "establishing, operating or promoting a pyramid promotional scheme where a consumer gives consideration for the opportunity to receive compensation that is derived primarily from the introduction of other consumers into the scheme rather than from the sale or consumption of products". A review of the law on pyramid selling will be undertaken in the context of the general ongoing review of consumer legislation and the transposition of the Unfair Commercial Practices Directive, 2005/29/EC.

I urge people to be vigilant in how they use their money. They should reflect on whether it is realistic to expect other people to give them large sums of money for nothing. Everyone is free to spend their money as they wish but schemes that appear too good to be true are probably just that.