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 —

(a)

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 —

(a)

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

(b)

time and effort spent in pursuit of sales, distribution or recruiting activities;”;

(b)

by deleting the words “sale or lease” in the definition of “commodity” and substituting the words “a sale, lease or licence”;

(c)

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)

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;

(b)

that person receives any benefit, directly or indirectly, as a result of —

(i)

the recruitment, acquisition, action or performance of one or more additional participants in the scheme or arrangement; or

(ii)

the sale, lease, licence or other distribution of the commodity by one or more additional participants in the scheme or arrangement; and

(c)

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

(d)

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.”.