New clampdown on 'pyramid' schemes
The Government will unveil new regulations today designed to stamp out “pyramid” scams.
A loophole in the existing law has allowed the schemes to continue operating unhampered, with investors losing massive sums of money.
Gardaí have estimated that as much as €20m was poured into the controversial Liberty Chart System in Cork and Kerry by the beginning of this year.
Because the scheme “gifted” cash rather than sold goods or services it was beyond the remit of Pyramid Selling Act 1980, the present legislation dealing with the ‘get-rich-quick’ frauds.
The new measures, which are expected to outlaw the scams as well as other unfair commercial practices by bringing them under consumer-protection laws, are to be announced by Minister for Enterprise, Trade and Employment Micheál Martin.
