Screen a recruitment scheme against the pyramid description
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the scheme documents, list any payment to join, any payment promised for recruiting another person, and how a participant is said to make money, including whether a product or service is sold. Do not decide that the scheme is a pyramid scheme.
- What the lawyer must review
- The lawyer decides whether the scheme is a pyramid scheme. The ACCC says it is against the law to participate in a pyramid scheme or to persuade someone to participate. On the page, people must pay to join, they are promised payment for recruiting others, and only a small number at the top are likely to receive any real financial benefit. The page distinguishes a multi-level marketing scheme, in which people make money from selling a genuine product or service. It says a pyramid scheme can involve a token product, but the only real way to make money is by recruiting. The lawyer applies that distinction to this scheme. The sales-practices guide named on the page was not opened.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the scheme documents, list any payment to join, any payment promised for recruiting another person, and how a participant is said to make money, including whether a product or service is sold. Do not decide that the scheme is a pyramid scheme. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Record both the join payment and the recruitment payment. The page uses both.
- Do not call a scheme a pyramid because it has levels. The page separates a scheme that pays for selling a genuine product.
- The guide was not opened. Do not add elements from it.
Sources
- ACCC, unfair business practices · 2026-10-22
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.