Competition and Consumer Act 2010
Sch 2 s 164Participation in pyramid schemes
Start here
Get a plain-English read of Sch 2 s 164
Turn the raw legal text into a practical explanation grounded in Competition and Consumer Act 2010.
164 Participation in pyramid schemes
(1) A person commits an offence if the person participates in a pyramid scheme.
(2) A person commits an offence if the person induces another person to participate in a pyramid scheme.
(3) Subsections (1) and (2) are offences of strict liability.
Penalty
(4) An offence against subsection (1) or (2) committed by a body corporate is punishable on conviction by a fine of not more than the greater of the following:
(a) $100,000,000;
(b) if the court can determine the value of the benefit that the body corporate, and any body corporate related to the body corporate, have obtained directly or indirectly and that is reasonably attributable to the commission of the offence—3 times the value of that benefit;
(c) if the court cannot determine the value of that benefit—30% of the body corporate’s adjusted turnover during the breach turnover period for the offence.
(5) An offence against subsection (1) or (2) committed by a person other than a body corporate is punishable on conviction by a fine of not more than $2,500,000.