Written Question·Department for Business and Trade·UIN 13973

Pyramid Selling: Regulation

Tabled: 12 November 2024

Answered: 18 November 2024

Named Day

Question

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

Justin Madders

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...

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