The government has pledged to review a law covering pyramid schemes after lawmakers called for prompt action to plug loopholes.
Rita Lau Ng Wai-lan, secretary for commerce and economic development, told the Legislative Council yesterday that the Pyramid Selling Prohibition Ordinance would be examined in the near future.
Police have received seven allegations of pyramid scams over the past two years.
Four cases, involving 157 victims and HK$8.78 million, resulted in the arrest of 21 people. Three cases were not pursued.
Another 148 complaints relating to the tactics of marketing firms and agents were reported in the same period, but only eight cases were substantiated, involving 14 victims and HK$2.28 million.
Eleven people had been arrested for withholding goods or helping others to use false documents to borrow money.
Pyramid schemes involve an illegal business model that rewards participants primarily by enrolling others into the scheme, rather than selling products or services.
