Australian Consumer Law (Competition and Consumer Act 2010 Schedule 2)
Chapter 3 Part 3-1: Unfair practices – Australian Consumer Law (Competition and Consumer Act 2010 Schedule 2)

Australian Consumer Law (Competition and Consumer Act 2010 Schedule 2) s44: ss 44 to 46 Do not participate in or induce participation in a pyramid scheme

A person must not participate in a pyramid scheme (establish, promote or take part in it in any capacity, including as employee or agent) or induce or attempt to induce anyone else to do so. A pyramid scheme is one where new participants must make a participation payment to other participants and those payments are entirely or substantially induced by the prospect of recruitment payments for introducing further participants (s 45); for marketing schemes, the court weighs whether participation payments bear a reasonable relationship to the value of goods or services supplied and the emphasis given to recruitment rewards against the goods or services themselves (s 46).

Maintained by Gerard Blokdyk

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