Chain gift schemes

Part of: Lotteries and society lottery registration

Contents

Chain gift schemes are illegal under section 43 of the Gambling Act 2005. It is an offence to invite someone to join, promote, or take part in a chain gift scheme.

A chain gift scheme is an arrangement where:

  • people pay a joining fee to participate, and
  • they are encouraged to believe they will receive fees or payments from others that exceed what they paid

These schemes often resemble pyramid selling but do not involve the sale of a product.

Penalties

Anyone found guilty of promoting or participating in a chain gift scheme may face:

  • a fine, or
  • imprisonment

Report concerns

If you suspect a chain gift or pyramid-style scheme is being promoted, report it to Action Fraud or contact the Licensing Team for advice.

Email: licensing@trafford.gov.uk

Telephone: 0161 912 4047