Section 20 — Fair Trading Act 1986: Referral selling

20 Referral selling (1) Subject to subsection (2) of this section, no person shall induce another person to acquire goods or services by representing that the person acquiring the goods or services will, after the contract for the acquisition of the goods or services is made, receive a rebate, commission, or other benefit in return for giving that person the names of prospective customers or otherwise assisting that person to supply goods or services to other users or consumers, if receipt of the rebate, commission, or other benefit is contingent on an event occurring after that contract is made. (2) Nothing in subsection (1) of this section applies to the acquisition of goods for resupply. Compare: Trade Practices Act 1974 (Aust),

s 57