Australian Capital Territory
Pyramid Selling Act 1973 (repealed)
A1973-56
Republication No 1
Effective:  1 January 1993
Republication date: 10 January 2014
As repealed by A1992-72 s 3

Unauthorised version prepared by ACT Parliamentary Counsel’s Office

About this republication
The republished law
This is a republication of the Pyramid Selling Act 1973 effective 1 January 1993.
Kinds of republications
The Parliamentary Counsel’s Office prepares 2 kinds of republications of ACT laws (see the ACT legislation register at www.legislation.act.gov.au):
•	authorised republications to which the Legislation Act 2001 applies
•	unauthorised republications.
The status of this republication appears on the bottom of each page.

Australian Capital Territory

pyramid selling act 1973
Repealed by Act No. 72, 1992 (in force on 1 January 1993)
TABLE OF PROVISIONS
Section
	1.	Short title
	2.	Interpretation
	3.	Trading schemes to which Act applies
	4.	Offences by promoters of trading schemes
	5.	Offences by participants in, or persons acting in accordance with, trading schemes
	6.	Prescribed payments and inducements
	7.	Penalties
	8.	Liability of directors of body corporate
	9.	Powers of the Supreme Court
	10.	Procedure in the Supreme Court

An Act relating to Pyramid Selling
Short title
1.  This Act may be cited as the Pyramid Selling Act 1973.1
Interpretation
2.  A reference in this Act to the making of a payment to or for the benefit of a person shall be read as including the making of a payment partly to or for the benefit of that person and partly to or for the benefit of one or more other persons.
Trading schemes to which Act applies
3.  (1)  A scheme is a trading scheme to which this Act applies if the scheme includes the following elements:
	(a)	goods or services, or both, are to be provided by the promoter of the scheme or, in the case of a scheme promoted by two or more persons acting in concert, by one or more of the promoters of the scheme;
	(b)	the goods or services so provided are to be supplied to or for other persons under transactions effected by persons (not being promoters of the scheme) who participate in the scheme.
(2)  For the purposes of subsection (1)—
	(a)	a scheme shall be taken to include the element referred to in paragraph (1) (b) whether the transactions referred to in that paragraph are effected by participants in the capacity of servants or agents of the promoter of the scheme or of one of the promoters of the scheme, as the case may be, or in any other capacity;
	(b)	a scheme includes any arrangements made in connexion with the carrying on of a business, whether those arrangements are wholly in writing or wholly oral or partly in writing and partly oral; and
	(c)	a reference to the provision of goods or services by a person shall be construed as including a reference to the provision of goods or services under arrangements to which that person is a party.
Offences by promoters of trading schemes
4.  (1)  A person who is the promoter, or one of the promoters, of a trading scheme to which this Act applies is guilty of an offence if a participant in the scheme or a person who has applied or been invited to become a participant in the scheme makes a prescribed payment to or for the first-mentioned person.
(2)  A person who is the promoter, or one of the promoters, of a trading scheme to which this Act applies is guilty of an offence if, by holding out a prescribed inducement—
	(a)	he attempts to induce a participant in that trading scheme to make a payment to or for the benefit of that person or another person who is a promoter of, or a participant in, that trading scheme; or
	(b)	he attempts to induce a person to become a participant in that trading scheme and to make a payment to or for the benefit of the first-mentioned person or another person who is a promoter of, or a participant in, that trading scheme.
Offences by participants in, or persons acting in accordance with, trading schemes
5.  (1)  A person who is a participant (otherwise than as a promoter) in a trading scheme to which this Act applies is guilty of an offence if another participant in the scheme or a person who has applied or been invited to become a participant in the scheme makes a prescribed payment to or for the first-mentioned person.
(2)  A person who is a participant (otherwise than as a promoter) in a trading scheme to which this Act applies or who is acting in accordance with such a scheme is guilty of an offence if, by holding out a prescribed inducement—
	(a)	he attempts to induce a participant in that trading scheme to make a payment to, or for the benefit of, that person or another person who is the promoter of, or one of the promoters of, or a participant in, the trading scheme; or
	(b)	he attempts to induce a person to become a participant in that trading scheme and to make a payment to, or for the benefit of, the first-mentioned person or another person who is the promoter of, or one of the promoters of, or a participant in, that trading scheme.
Prescribed payments and inducements
6.  (1)  A payment that a person is induced to make by reason that there is held out to that person the prospect of his receiving payments or other benefits in respect of the introduction (whether by himself or by another person) of other persons who may become participants in a trading scheme is a prescribed payment for the purposes of this Act.
(2)  Subject to subsection (3), a person shall, for the purposes of this Act, be taken to hold out to another person a prescribed inducement if he holds out to that other person the prospect of receiving payments or other benefits in respect of the introduction (whether by the second-mentioned person or by another person) of persons who may become participants in a trading scheme.
(3)  A person shall not be taken to have held out a prescribed inducement unless the prospect referred to in subsection (2) constituted the whole, or a substantial part, of the inducement held out.
Penalties
7.  A person who commits an offence against this Act is punishable, on summary conviction—
	(a)	in the case of a corporation—by a fine not exceeding $10,000; or
	(b)	in the case of a person not being a corporation—by a fine not exceeding $5,000 or imprisonment for a period not exceeding 6 months.
Liability of directors of body corporate
8.  Where a corporation is convicted of an offence against this Act, each person who, at the time of the commission of the offence, was a director of the corporation shall be deemed to be guilty of the offence and shall be liable to be convicted and punished as if the offence had been committed by him unless he proves that the offence was committed without his knowledge or that he took reasonable steps to prevent the commission of the offence.
Powers of the Supreme Court
9.  (1)  Where a person has been convicted of an offence against this Act, the Supreme Court, on an application made for the purpose, may make any one or more of the following orders:
	(a)	an order declaring the whole or any part of a contract or of a collateral arrangement relating to a contract to be void and, if the Court thinks fit, to have been void ab initio or at all times on and after such date (being a date before the date on which the order is made) as is specified in the order;
	(b)	an order varying a contract or such an arrangement in such manner as is specified in the order and, if the Court thinks fit, declaring the contract or arrangement to have had effect as so varied on and after such date (being a date before the date on which the order is made) as is specified in the order;
	(c)	an order directing the refund of money or the return of property;
	(d)	an order directing the payment to a person who has suffered loss or damage of the amount of the loss or damage.
(2)  Subject to section 10, where a person has been convicted of an offence against this Act, an order made under this section, being an order referred to in paragraph (1) (a) or (1) (b), binds each of the parties to the contract or arrangement to which the order relates.
(3)  Subject to section 10, where a corporation has been convicted of an offence against this Act, an order referred to in paragraph (1) (c) or (1) (d) may be made—
	(a)	against that corporation;
	(b)	against a corporation that is, for the purposes of the Companies Act 1981 of the Commonwealth, to be deemed to be related to that corporation; and
	(c)	against any person who is a director of either of those corporations.
Procedure in the Supreme Court
10.  (1)  The parties to an application for an order under section 9 are—
	(a)	the applicant;
	(b)	the person convicted of an offence against this Act; and
	(c)	such other persons as are specified in the application.
(2)  An application for an order under section 9 shall be served personally or in such other manner as the Court or a Judge directs.
(3)  An order referred to in paragraph 9 (1) (a) or 9 (1) (b) does not bind a person who was not a party to the application for the order.
(4)  An order referred to in paragraph 9 (1) (c) or 9 (1) (d) shall not be made against a person not a party to the application for the order.
(5)  An order referred to in paragraph 9 (1) (c) or 9 (1) (d) may be enforced as if it were a judgment of the Supreme Court.
(6)  Where the Supreme Court makes an order under paragraph 9 (1) (c) or 9 (1) (d) against a person who has been convicted of an offence against this Act, the Court has the same powers in relation to the penalty (if any) imposed on that person in respect of the conviction as the Court would have had on an appeal by that person, under Part XI of the Magistrates Court Act 1930, against that penalty.

NOTE
1.	The Pyramid Selling Act 1973 as shown in this reprint comprises Act No. 56, 1973 amended as indicated in the Tables below.
	Citation of Laws—The Self-Government (Citation of Laws) Act 1989  (No. 21, 1989) altered the citation of most Ordinances so that after Self-Government day they are to be cited as Acts.  That Act also affects references in ACT laws to Commonwealth Acts.
Table of Ordinances
Ordinance	Number  
and year	Date of 
notification 
in Gazette	Date of 
commencement	Application, saving or transitional provisions	

Pyramid Selling Ordinance 1973	56, 1973	19 Dec 1973	19 Dec 1973		
Pyramid Selling Ordinance 1974	32, 1974	17 Sept 1974	17 Sept 1974	—	
Ordinances Revision (Companies Amendments) Ordinance 1982	38, 1982	30 June 1982	1 July 1982	—	
Magistrates Court Ordinance 1985	67, 1985	19 Dec 1985	1 Feb 1986 (see Gazette 1986, No. G3, p. 265)
	—	
as repealed by
Fair Trading (Australian Consumer Law) Act 1992
	72, 1992	8 Dec 1992	1 Jan 1993 (Gaz 1992 No S245)		
Table of Amendments
ad. = added or inserted      am. = amended     rep. = repealed      rs. = repealed and substituted

Provision	How affected

S. 8	am. No. 32, 1974
S. 9	am. No. 38, 1982
S. 10	am. No. 67, 1985

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