§ Mr. Raphael Tuckasked the Secretary of Slate for Trade and Industry what steps he is taking to advise members of the public about the danger involved in investing in a pyramid selling business.
§ Sir G. HoweI have already made it clear that the Government share the acute public concern about pyramid selling. My intention is to give wide publicity to the Government's proposals for dealing with the practice.
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§ Mr. Raphael Tuckasked the Secretary of State for Trade and Industry (1) whether, in his forthcoming proposals, he will require all pyramid selling businesses to grant exclusive sales territories to their distributors as recommended in the recent report by the Public Interest Research Centre, a copy of which he has received;
(2) if he is satisfied with the provisions made by pyramid selling businesses for the repurchase of unsold stock in the possession of unsuccessful distributors;
(3) if he will seek undertakings from all pyramid selling businesses to stop the recruitment of distributors until such time as statutory controls are introduced.
§ Sir G. HoweThe proposals for dealing with pyramid selling, which as I told the hon. Member on 5th March I intend shortly to make public, will set out the Government's attitude to all these matters.—[Vol. 852, c. 11–13.]
§ Mr. Raphael Tuckasked the Secretary of State for Trade and Industry if he will name the pyramid selling businesses known to be operating in the United Kingdom and indicate which of these have been or are being investigated under the powers provided by Section 109 of the Companies Act 1967.
§ Sir G. HoweNo. There is, as yet, no statutory definition of pyramid selling and information about inquiries made under the powers provided by Section 109 of the Companies Act may be disclosed only in the circumstances prescribed in Section 111 of that Act.
§ Mr. Raphael Tuckasked the Secretary of State for Trade and Industry if he will 210W consult with his European colleagues with a view to the introduction of common controls over pyramid selling businesses.
§ Sir G. HoweThe practice of pyramid selling is largely confined to the English-speaking countries, but I will bear the hon. Member's suggestion in mind.