Jim Cunningham – 2015 Parliamentary Question to the Department for Business, Innovation and Skills

The below Parliamentary question was asked by Jim Cunningham on 2015-10-13.

To ask the Secretary of State for Business, Innovation and Skills, what steps his Department is taking to better identify pyramid schemes involving UK nationals; and if he will make a statement.

Nick Boles

The Department has no plans to identify pyramid selling schemes.

The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) regulate how traders market and promote goods and services to consumers by prohibiting unfair commercial practices, such as the use of misleading actions or aggressive commercial practices. Establishing, operating or promoting a Pyramid scheme, where the intention is that a consumer receives compensation primarily from the introduction of other consumers into the scheme, rather than from the sale or consumption of products, is a banned practice under the CPRs. Enforcement of the CPRs is by local authority trading standards services.

Alleged breaches of the CPRs should be reported, in the first instance, to the Citizens Advice consumer helpline on 08454 04 05 06 (https://www.adviceguide.org.uk/). The helpline offers a free service advising consumers on their rights and passes on details of complaints to Trading Standards services where appropriate.

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