---
title: "Screen a recruitment scheme against the pyramid description"
url: "https://ailawframework.com/practice/competition-and-consumer-law/screen-a-recruitment-scheme-against-the-pyramid-description"
type: "task"
site: "AI Law Framework"
id: "A29-CO20261022-13"
practice_area: "Competition & Consumer Law (ACCC / ACL)"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Screen a recruitment scheme against the pyramid description

> 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.…

Canonical page: https://ailawframework.com/practice/competition-and-consumer-law/screen-a-recruitment-scheme-against-the-pyramid-description  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Competition & Consumer Law (ACCC / ACL)](https://ailawframework.com/practice/competition-and-consumer-law.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| 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 / versions | 1 jurisdiction versions below |

## Checking plan

**Source-by-source verification**

The responsible lawyer checks each element against the source named for it.

- What the AI does: 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 does: 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.
- Who reviews: Responsible lawyer with competence in the matter
- Basis: Practical workflow informed by the linked primary sources; the traffic light and working checks are editorial guidance, not a court or regulator classification.
- Why: The level reflects what the work is, the consequence of an error, and how much of the output the lawyer must independently re-derive.

## Checks the lawyer makes

1. Record both the join payment and the recruitment payment. The page uses both.
2. Do not call a scheme a pyramid because it has levels. The page separates a scheme that pays for selling a genuine product.
3. The guide was not opened. Do not add elements from it.

## Notes

- 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.

## Sources

- [ACCC, unfair business practices](https://www.accc.gov.au/business/selling-products-and-services/unfair-business-practices) (checked 2026-10-22)

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/practice/competition-and-consumer-law/screen-a-recruitment-scheme-against-the-pyramid-description/united-states.md) | Yellow |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*