PARLIAMENTARY WRITTEN QUESTION
Pyramid Selling: Regulation (30 November 2016)
Question Asked
To ask the Secretary of State for Business, Energy and Industrial Strategy, what regulations govern multi-level marketing schemes in the UK.
Asked by:
Helen Hayes (Labour)
Asked by:
Helen Hayes (Labour)
Answer
Multi-level marketing schemes where no products are sold can be considered to be pyramid selling which is an unfair practice under Schedule 1 of the Consumer Protection from Unfair Trading Regulations 2008 and may also be considered fraudulent.
To be legal, multi-level marketing schemes must comply with the Trading Scheme Act 1996 and the Trading Schemes Regulations 1997.
Answered by:
Margot James (Conservative)
6 December 2016
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