3. Unlawful to promote or participate in, or hold out that person is promoting or participating in, pyramid selling scheme or arrangement

Terms defined in s 2

• multi-level marketing scheme or arrangement

  multi-level marketing scheme or arrangement

  Defined · s 2

  “multi-level marketing scheme or arrangement” has the same meaning as “pyramid selling scheme or arrangement” in this Act;

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• promote

  promote

  Defined · s 2

  “promote” includes to manage, form, operate, carry on, engage in or otherwise to organise;

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• pyramid selling scheme or arrangement

  pyramid selling scheme or arrangement

  Defined · s 2

  “pyramid selling scheme or arrangement” means any scheme or arrangement for the distribution or the purported distribution of a commodity by which —(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)).

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