PYRAMID SELLING PROHIBITION (CHAPTER 355) Whole document:To prohibit the promotion of pyramid selling schemes and to provide forconnected matters.[1 September 1980.] 1. Short is Ordinance may be cited as the Pyramid Selling Prohibition Ordinance. 2. 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 managementof a pyramid selling scheme;"pyramid selling scheme" means a scheme whereby--(a) a participant in the scheme is granted a licence or right to introduceanother participant into the scheme who is also granted such licence orright and who may further extend the chain of persons who are granted suchlicence or right, notwithstanding that there may be a limitation to thenumber of participants or that there may be any further conditionsaffecting eligibility for such licence or right; and(b) a participant receives a reward on, or at any time after, theintroduction into the scheme by him of another participant which reward isbased, whether wholly or in part, otherwise than on the fair market valueof goods or services actually sold by him or by or through that otherparticipant;"reward" includes, refund, commission, discount or allowance but does notinclude payment for sales demonstration equipment and materials suppliedat not more than their fair market value and not resold. 3. Offence of promoting a pyramid selling y person who knowingly promotes a pyramid selling scheme commits anoffence and is liable on conviction upon indictment to a fine of $ 100,000and to imprisonment for 3 years. 4. Liability of directors, partners etc.(1) Where an offence under this Ordinance has been committed by a bodycorporate or member of a body unincorporate, any person who at the time ofthe offence--(a) in the case of a body corporate, was a director, secretary, principalofficer or manager of that body corporate; or(b) in the case of a member of a body unincorporate, was a partner oroffice holder in or a member or manager of that body unincorporate,or who, in either case, was acting or purporting to act in any suchcapacity commits a like offence.(2) Where any person referred to in subsection (1) is charged with anoffence under this Ordinance it shall be a defence for him to prove thatthe offence was committed without his consent or connivance and that heexercised such diligence to prevent the commission of the offence as heought to have exercised having regard to the nature of his functions andto all other circumstances. 5. Power to award compensation.(1) Notwithstanding any provision in any other Ordinance, where a personis convicted of an offence under this Ordinance the court may, in additionto passing such sentence as may otherwise be passed by law, order theperson so convicted to pay to any person who has suffered financial lossresulting from that offence, such amount as compensation as it thinksreasonable.(2) An amount ordered as compensation under subsection (1) shall berecoverable as a civil debt by the person in whose favour the order ismade. 6. Saving of rights and thing in this Ordinance shall prejudice the enforcement by any person ofany right or claim against any person ceasing to promote a pyramid sellingscheme by reason of this Ordinance.