The Labour Party has initiated a Private Members' Bill to ban pyramid schemes in Ireland.
Speaking at the lunch of the bill, Ms Mary Upton TD, Labour spokeswoman on consumer affairs, said the current schemes are a variation of the pyramid-selling schemes outlawed in the 1980s and, as a result, should be banned.
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"Pyramid gifting schemes have been spreading like wild fire in recent months and thousands of people have been drawn into them into the hope of making easy money," she said.
"The net result is the same. Large numbers of people may invest money in the scheme but only those in at the beginning have any chance of benefiting and the majority stand to lose their money".
Pyramid-gifting schemes work on the basis of the recruitment of eight members who "invest" in the scheme and who in turn must also recruit eight members who also invest.
Once there is a sufficient number of "investors", the original eight recruits leave taking their original investment and an agreed profit.
"Like most pyramid schemes gifting clubs must continually recruit ever-increasing numbers in order to survive," Ms Upton said.
"The latest schemes are particularly objectionable as they are aimed primarily at women and the promoters seek to pass them off as some sort of expression of solidarity among women. The inevitable result is that a lot of women will lose money - and substantial amounts in some cases". Under the proposed bill, a person found guilty of starting a pyramid scheme will face up to five years in jail and a fine.