Document ID: chunk:federal_register_of_legislation:C2004C01260:clause:1_75azo:p1
Version: federal_register_of_legislation:C2004C01260
Segment Type: clause
Provision Reference: sch 1 cl 75AZO (pt 1/3)
Character Range: 65011–67506

75AZO  Pyramid selling

 (1) A corporation is guilty of an offence punishable on conviction by a fine not exceeding 2,000 penalty units if:
 (a) the corporation is the promoter of, or (if there are more than one) one of the promoters of, or is a participant in, a trading scheme to which this section applies; and
 (b) a person who is a participant in that trading scheme, or has applied or been invited to become a participant in that trading scheme, makes any payment to or for the benefit of the corporation, being a payment that the person is induced to make by reason that the prospect is held out to the person of receiving payments or other benefits in respect of the introduction (whether by the person or by another person) of other persons who become participants in that trading scheme.

 (2) A corporation is guilty of an offence punishable on conviction by a fine not exceeding 2,000 penalty units if:
 (a) the corporation is the promoter of, or (if there are more than one) one of the promoters of, is a participant in, or is otherwise acting in accordance with, a trading scheme to which this section applies; and
 (b) the corporation, by holding out to any person the prospect of receiving payments or other benefits in respect of the introduction (whether by the person or by another person) of other persons who become participants in that trading scheme, attempts to induce that person:
 (i) if he or she is already a participant in that trading scheme, to make any payment to or for the benefit of the promoter or any of the promoters or to or for the benefit of a participant in that trading scheme; or
 (ii) if he or she is not already a participant in that trading scheme, to become such a participant and to make a payment of a kind mentioned in subparagraph (i).

 (3) A corporation is guilty of an offence punishable on conviction by a fine not exceeding 2,000 penalty units if the corporation promotes, or takes part in the promotion of, a scheme under which:
 (a) a payment is to be made by a person who participates, or who has applied or been invited to participate, in the scheme to or for the benefit of the corporation or another person who takes part in the promotion of the scheme or to or for the benefit of another person who participates in the scheme; and
 (b) the inducement for making the payment is the holding out to the person who makes or is to make the payment the prospect of receiving payments from other persons who may participate in the scheme.