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Tough times seem to bring every dodgy, “get-rich-quick” scheme out of the woodwork, and chain letters are an old favourite of the unscrupulous.

In a move that does nothing but harm to the public perception of Multi-Level Marketing, the latest crop seem to all claim that they’re legal and legitimate because they’re actually a form of MLM.

The simple fact of the matter is that they’re neither legal, legitimate nor a form of Multi-Level Marketing! They’re just plain, old fashioned illegal, unethical Pyramid Selling schemes!

Watch Out for These Illegal Chain Letters

There are a number of these schemes doing the rounds at present. Of particular concern are the following:

The Edward L. Green Letter

Contrary to popular belief, Edward L. Green of Yukon, USA, does not exist. Nor do the kinds of rewards touted by the letter. The only real winner from these scams is Australia Post, which benefits from huge postage sales.

The Mutual Assistance Program

A particularly insidious scheme that claims to be legitimate because it requires photocopies of postal receipts and bank deposit slips to be attached. Apart from losing your money, you risk prosecution because your name and address are actually listed on copies of the letter… prima facie evidence of your willing involvement.

(See letter from NSW Consumer Affairs Department — click here.)

The Self-Help Co-Operation Program
Just another name for the Mutual Assistance Program — and just as illegal.

LATE NEWS!

The latest version of the Self-Help Co-operation Program offers a neat twist… it’s now “legal” because it doesn’t offer any product for sale! Not only that, it’s now supported by highly credible letters from Monica Williams, Ph.D, Jennifer Peterson, Sociology Researcher, and Julie Chan, Accountant, from Perth WA. (Ladies, if you exist, you’re invited to contact me here to discuss the “legality” of this program.)

It’s also pitched strongly at women, in warm, fuzzy “New Age” terminology. For example, it’s no longer a chain letter, it’s an “Abundance Letter”. What none of this does, however, is to change the truth… it’s just more of a “Barker’s Egg” than ever.

It’s always interesting to observe the participants’ names and addresses on chain letters. They’re usually restricted to initials and post office boxes, which is a fair indication of how those people really feel about their involvement!

The fact is that nobody — nobody — ever gets involved in these schemes for any other reason than greed. If you’ve ever received one and been tempted, analyse your true feelings. What appeals to you? Are they noble motives? Or are they something else?

Our experience has been that most people who get involved do so in ignorance of the fact that it is illegal, and that inducing others to join these illegal schemes is breaking the law. Fines are substantial if you’re convicted.

We advise you to steer well clear of anything that appeals to greed, laziness and selfishness. Not because they’re “not nice”, but because they’re just plain risky — and dumb!

For more about Chain Letters, see our Warning Bulletin.

  
What the law says