§ 34. Mr. Raphael Tuckasked the Secretary of State for Trade and Industry if he will seek powers to make the practice known as pyramid selling a criminal offence.
§ Mr. RidleyI am first considering the application of existing legislation to cases where this practice may have been abused.
§ Mr. TuckIs not the Minister aware that many people are being "conned" out of their whole life savings—I have received tragic letters showing that hundreds of pounds, and sometimes thousands, have been taken—by a small number of operators who are able through this vicious system to swindle a vast mass of people? Is not the hon. Gentleman aware that this system is a criminal offence in many of the States of the United States of America? How long will he allow such an abominable practice to continue in Britain?
§ Mr. RidleyTwo companies have been investigated under Section 109 of the Companies Act, and we have petitioned for the compulsory winding up of a third, Koscot Interplanetary Limited, for the reasons which the hon. Gentleman has given. He will see that we have been taking pretty severe action in the matter.