The Commerce & Economic Development Bureau said today the Pyramid Schemes Prohibition Ordinance will come into effect on January 1.
The ordinance defines more clearly what constitutes a “pyramid scheme” – a scheme under which the main incentive for a participant to pay to join is the opportunity to receive benefits from the introduction of further new participants.
The ordinance further provides that any participants, who induce or attempt to induce other people to participate in a pyramid scheme, with the knowledge that the benefits they may get from joining the scheme are entirely or substantially derived from the introduction of further new participants, commits an offence warranting seven years in jail and a $1 million fine.
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