Singapore legislation
Clause 2
of Multi-Level Marketing and Pyramid Selling (Prohibition) (Amendment) Bill
Clause 2
Amendment of section 2
Section 2 of the Multi-Level Marketing and Pyramid Selling (Prohibition) Act (referred to in this Act as the principal Act) is amended —
by inserting, immediately before the definition of “commodity”, the following definition:“ “benefit” includes any gratuity, commission, cross commission, bonus, refund, discount, dividend and any other payment, service or advantage of whatever description, but does not include —
the purchase of a sample of a commodity furnished at a price not exceeding the cost of the sample and which is not for resale; and
time and effort spent in pursuit of sales, distribution or recruiting activities;”;
by deleting the words “sale or lease” in the definition of “commodity” and substituting the words “a sale, lease or licence”;
by deleting the definition of “pyramid selling scheme or arrangement” and substituting the following definition:“ “pyramid selling scheme or arrangement” means any scheme or arrangement for the distribution or the purported distribution of a commodity whereby —
a person may in any manner acquire a commodity or a right or a licence to acquire the commodity for sale, lease, licence or other distribution;
that person receives any benefit, directly or indirectly, as a result of —
the recruitment, acquisition, action or performance of one or more additional participants in the scheme or arrangement; or
the sale, lease, licence or other distribution of the commodity by one or more additional participants in the scheme or arrangement; and
any benefit is or may be received by any other person who promotes, or participates in, the scheme or arrangement (other than a person referred to in paragraph (a) or an additional participant referred to in paragraph (b)).”; and
by inserting, immediately after subsection (1), the following subsection:“(1A) In this Act, “pyramid selling scheme or arrangement” shall be taken not to include such schemes or arrangements for the sale, lease, licence or other distribution of a commodity, or any class of such schemes or arrangements, as the Minister may by order prescribe, subject to such terms or conditions as may be specified in the order.”.