(a) That's wrong. Broadly speaking, pyramid schemes are a business model that recruits members by promising them payment or services if and when they enrol other persons into the scheme.  Participation in pyramid schemes is prohibited and penalised by s 44 of the ACL. A pyramid scheme is defined by s 45 as a scheme whereby all persons joining the scheme as a participant must provide a benefit of some sort to another participant, in the expectation that they will receive benefits when new people join the scheme in the future. In this case, persons joining B's scheme are promising to find new customers for B, and in return, they hope to receive the benefit of a future refund.

Under the provisions of s 44, all participants in a pyramid scheme are liable to pay a pecuniary penalty.

What B is doing also amounts to 'referral selling', which is prohibited by s 49 of the ACL. Referral selling occurs when a supplier persuades a consumer to buy goods or services by promising them a reduction of the price, or some payment, if the consumer assists them in finding further customers, and if the payment of the rebate or other payment depends on events that will occur after the consumer has agreed to buy the goods or services.