Legal Question in Business Law in Illinois
income opportunity
I received letter to make some extra income using this simple business strategy:
The letter has a list of 6 people.
I am required to send 1 dollar to each of them to request that they add me to their mailing list in which they will send 200 letters identical to the one that I received.
received. Their letter has reached other people who respond I would receive a dollar from each of them, and add their name to the next mailing list until my gets put at the bottom of the list and them drops off. Is this legal or would this be ripping people off?
2 Answers from Attorneys
Re: income opportunity
This is a pyramid scheme. Do not get involved.
Re: income opportunity
From the United States Postal Service:
A chain letter is a "get rich quick" scheme that promises that your mail box will soon be stuffed full of cash if you decide to participate. You're told you can make thousands of dollars every month if you follow the detailed instructions in the letter.
A typical chain letter includes names and addresses of several individuals whom you may or may not know. You are instructed to send a certain amount of money--usually $5--to the person at the top of the list, and then eliminate that name and add yours to the bottom. You are then instructed to mail copies of the letter to a few more individuals who will hopefully repeat the entire process. The letter promises that if they follow the same procedure, your name will gradually move to the top of the list and you'll receive money -- lots of it.
There's at least one problem with chain letters. They're illegal if they request money or other items of value and promise a substantial return to the participants. Chain letters are a form of gambling, and sending them through the mail (or delivering them in person or by computer, but mailing money to participate) violates Title 18, United States Code, Section 1302, the Postal Lottery Statute.