Pyramid Schemes Prohibition Ordinance
A1373
Section 3
Ord. No. 22 of 2011
participant (參與者) means a person who participates in a pyramid scheme;
participate (參與) means to take part in a pyramid scheme in any capacity other than as a promoter of the scheme;
participation payment (參與費)—see section 3(1)(a);
promote (推廣) means establish, advertise, manage or assist in the management of a pyramid scheme;
promoter (推廣者) means a person who promotes a pyramid scheme;
recruitment payment (招募得益)—see section 3(1)(b).
3. What is a pyramid scheme
(1) A pyramid scheme is a scheme with all of the following characteristics—
- (a) to participate in the scheme, any or all new participants must provide either of the following (participation payment)—
- (i) a financial or non-financial benefit to, or for the benefit of, any participant or any promoter of the scheme;
- (ii) a financial or non-financial benefit partly to, or for the benefit of, any participant or any promoter of the scheme and partly to, or for the benefit of, another person;
- (b) the making of the participation payment is entirely or substantially induced by the prospect held out to the new participant that the new participant will be entitled to either of the following (recruitment payment)—
- (i) a financial or non-financial benefit to, or for the benefit of, the new participant;
