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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Is it illegal for a promoter or a participant in a trading

Customer Question

Is it illegal for a promoter or a participant in a trading scheme to persuade anyone to make a payment by promising benefits from getting others to join a scheme and which are the consequences?


 


e.g. Is it illegal to be a representative of a travel company's membership scheme, where you will get a commission by registering new members and they will do so as well?

Submitted: 3 years ago.
Category: Law
Expert:  Jo C. replied 3 years ago.
Hi.

Thank you for your question. My name is XXXXX XXXXX I will try to help with this.

-Could you explain your situation a little more?

Customer: replied 3 years ago.

Hi Jo,


 


Thank you for the quick response.


 


I have recently joined a travel operator/agency called Worldventures where you can benefit from travel packages etc after becoming a member.


 


But as a member, you can get a commission (e.g. become representative) by registering new members who the will have also to do the same in order to get a commission, too.


 


So, I would like to know if this is illegal (e.g. to try and register someone into a scheme by promoting the benefits (also moneywise) they could earn from.


 


Hope this explanation helps you

Expert:  Jo C. replied 3 years ago.
Thanks.

Is there any reason you think it might be?

What are you thinking of?
Customer: replied 3 years ago.

On the contract with them and on the presentation tools its is stated this for UK residents:


 


''Is it illegal for a promoter or a participant in a trading scheme to persuade anyone to make a payment by promising benefits from getting others to join a scheme''.


 


An after googling this I came up with lots of refers on it by different companies in different industries who work with representatives

Expert:  Ash replied 3 years ago.
Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return. There is no need to wait here, you will get an email when I reply.

So if someone joins and refers others and get a commission/reward - you want to know if that is illegal?

Customer: replied 3 years ago.

Hello Alex,


 


Thank you for your help.


 


Yes, and also if someone tries as representative of a company to persuade other people to join a scheme by promoting the benefits (money wise) they could get from this as well (commissions etc.)

Expert:  Ash replied 3 years ago.
Is it illegal - no. But it may be that the person needs to declare that they will be getting a commission.

But in itself it is not illegal.

Can I clarify anything for you about this today please?

Alex

Customer: replied 3 years ago.

Thank you Alex for your answer.


 


It's clear now for and I'm covered on this query.


 


Have a nice Saturday evening.

Expert:  Ash replied 3 years ago.
Thank you and I hope you do too.

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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
Ash and other Law Specialists are ready to help you
Expert:  Ash replied 3 years ago.
Have a read of this too:

http://www.berr.gov.uk/files/file24757.pdf

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