There have been renewed calls to amend the legislation to outlaw "gifting" schemes after it emerged that a vast sum of money has been collected by several individuals in west Cork for a multimillion euro operation.
The Labour Party spokesman on Enterprise, Trade and Employment, Brendan Howlin, said the schemes are "simply a variation on the pyramid selling scams" already outlawed by legislation.
"The net result of this scheme is that while large numbers of people may invest money, only those in at the beginning will have any chance of benefiting," Mr Howlin said.
"Current legislation does not outlaw these gifting schemes, but action at European level has been taken to ban such schemes across the EU."
He called on Minister for Enterprise, Trade and Employment Micheál Martin to amend the law to outlaw the schemes.
A scheme - organised by a European group called Liberty Systems - is operating in a number of areas in Cork. Participants are understood to be asked to buy a share of one of eight "balls" for €20,000 - which promises an eventual payout of between €40,000 to €80,000.
But gardaí are warning people that they have little guarantee of receiving these payouts.
Under the current legislation people who encourage others to "gift" money to the scheme can face up to €12,700 and/or two years in jail for their involvement under the Pyramid Selling Act of 1980.
