Issued By West Yorkshire Trading Standards Service

CHAIN LETTER GIFTING SCHEME HITS WEST YORKSHIRE

The West Yorkshire Trading Standards Service warns the public not to respond to a chain letter which appears to be flooding into the county. The letter which purports to originate in Norfolk urges the recipient to ‘earn £40,000 in cash’ by simply sending a gift of £10 to the top name on a list of 6 names and copying the letter 200 times to randomly chosen individuals.

The theory, as set out in the letter, is to delete the first name on the list and replace it with your own. The letter then progresses down the pyramid-shaped network of distribution, bringing riches to all who participate. This is fool’s gold. Participants may wait for months by their letterboxes until they realise they have spent £200 on stationery for no good reason and no return.

So-called gifting schemes such as this are prevalent in the USA but they are not illegal in the United Kingdom. UK legislation, which regulates multi-level marketing (or pyramid selling) only applies to trading in products and services. Gifting is not covered. Last year a scheme entitled Women Empowering Women received a great deal of adverse publicity for this reason. The Government is currently assessing how these schemes are dealt with in other countries, before deciding whether to amend UK law.

Martin Wood, Chief Officer of West Yorkshire Joint Services said:

 “Many of the victims of these schemes fail to realise that the pool of new investors soon dries up. Only those in the top hierarchy of the scheme stand to receive any returns. Some of these letters have been circulating for years. Our advice to anyone contemplating participating in this scheme would be: don’t bother-you are simply spreading bad news and financial loss”

Councillor Graham Clarke Chairman West Yorkshire Joint Services added:

“Sadly these schemes appeal to those with least money to lose. They benefit a minority who will use any tactic to separate innocent but all-too trusting individuals from their cash. Do yourself a favour and bin the letter”

If consumers do have any concerns they should contact the Consumer Helpline on 01133 848 848 between 8.30-6.30 Monday to Friday and 9.00-1.00 on Saturdays. Alternatively log on to our website at www.adviceline.org.uk or contact our minicom on 0113 2892 265.

For further information please contact:

Paul Cooper                                    Divisional Manager 0113 2898240

Graham Hebblethwaite                  Divisional Manager/General Media contact 0113 2898218

Andrew Bibby                                 Call Centre Manager 0113 2898237