Trevor Sargent (Dublin North, Green Party)
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Question 157: To ask the Minister for Enterprise, Trade and Employment if, in view of recent revelations regarding the inadequacy of the law on trading schemes, he intends to carry out a review of the Pyramid Selling Act 1980. [4127/06]

Pat Rabbitte (Dublin South West, Labour)
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Question 172: To ask the Minister for Enterprise, Trade and Employment if he intends to provide the public with additional protection against so called pyramid schemes; if, in particular, he will amend the legislation to cover so-called gifting schemes; and if he will make a statement on the matter. [4056/06]

Micheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 157 and 172 together.

I am aware of recent reports regarding so-called gifting schemes operating in Cork and Kerry. Under these schemes people pay sometimes large sums of money to other people in the expectation of other people giving them multiples of the original amount. The Pyramid Selling Act 1980, which prohibits people from inducing others to participate in pyramid selling schemes, applies to goods and services but there is a legal doubt as to whether this type of transaction is covered under the Act.

Ultimately it is for the courts to determine the law in this matter. The Garda Síochána is the enforcing authority for the Act.

I intend examining this issue in the context of the transposition of the unfair commercial practices directive, 2005/29/EC. The unfair commercial practices directive, which was adopted by the Council in May 2005, has as its aim increased protection for the consumer. The directive will outlaw certain practices. Specifically, the practice of "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" will be banned. I will ensure that the Pyramid Selling Act 1980 will be reviewed in the context of the transposition of the unfair commercial practices directive.

I urge people to be vigilant in how they use their money. People should reflect on whether it is realistic to expect other people to give them large sums of money for nothing.