Pyramid Selling: Regulation
(asked on 30th November 2016) - View Source
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what regulations govern multi-level marketing schemes in the UK.
This question was answered on 6th December 2016
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.