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Members of the public are invited to give their views on a package of proposed legislative amendments aimed at eradicating pyramid schemes on or before January 31, a spokesman for the Commerce and Economic Development Bureau said today (January 21).
The Government, on December 7, 2010 launched a public consultation on proposed legislative amendments to the Pyramid Selling Prohibition Ordinance (Cap. 355) with the objective of combating pyramid schemes more effectively.
The proposed legislative amendments set out in the consultation document include the following:
(a) to define "pyramid scheme" as a scheme in which new participants make a payment, and such a payment is entirely or substantially induced by the prospect that they will be entitled to receive a benefit substantially relating to the introduction of new participants, irrespective of whether the scheme involves any sale or marketing activities;
(b) to curb the proliferation and expansion of pyramid schemes, we propose that persons who induce other persons to join, with the knowledge that the benefits they may receive are entirely or substantially derived from the introduction of further new participants, should be subject to criminal sanctions, just as those who knowingly establish, advertise or manage pyramid schemes; and
(c) to enhance the deterrent effect, the maximum penalty prescribed should be increased from a fine of $100,000 and imprisonment for three years, to a fine of $1,000,000 and seven years in prison.
"We appeal to members of the public to send their views to us before January 31," the spokesman said.
"The Bureau will consider the views collected carefully before proceeding with the law drafting work. The target is to introduce an amendment bill into the Legislative Council in the current legislative session."
Members of the public can download the consultation document from the website of the Commerce, Industry and Tourism Branch of the Bureau at www.cedb.gov.hk/citb . They can send their views to the Bureau by post (Level 29, One Pacific Place, 88 Queensway, Hong Kong), fax (2869 4420), or e-mail (pyramid@cedb.gov.hk).
Ends/Friday, January 21, 2011
Issued at HKT 18:47
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