§ 35. Mr. Raphael Tuckasked the Secretary of State for Trade and Industry whether, in view of Mr. Justice Megarry's comments in the High Court of Justice that pyramid selling was capable of being operated dishonestly and could amount to swindle of a far-reaching nature, he will, as a matter of urgency, seek powers to make the practice of pyramid selling illegal in Great Britain.
§ Mr. NobleI have taken note of the judgment. It relates to the two companies for which winding-up orders have been made. Any wider implications it may have will require further examination. A study of pyramid selling is in hand and I hope shortly to reach decisions on any further measures that may be necessary to regulate the practice.
§ Mr. Raphael TuckIs the Miniser aware that numbers of people have been and are being swindled out of their life savings by slick operators in this field, that the practice has been made illegal in a number of States in the United States and that Mr. Justice Megarry referred to Koscot operating a scheme which reeked of cunning and fraud and was a swindle of a far-reaching nature? Cannot the right hon. Gentleman speed up matters so that more people are not swindled out of their savings? What does he intend to do about it?
§ Mr. NobleIn this case the Department acted quickly and, I am glad to say, very effectively. There is a large variety of dealings in franchises. The sort that was carried on by Koscot was a particularly bad one. There are variations. They are all being examined. I shall take whatever action is suitable as soon as I can.
§ Mr. LiptonCan we have an assurance that the Minister will not computerise this proposition, otherwise it will take at least a year before anything happens?
§ Mr. NobleI shall deal with it as quickly as possible. I see no need to use a computer for this purpose.