Canadian laws governing Make Money Fast/Chain Letter Schemes
The following is an excerpt from the Canadian Competition Act taken from a private web site:
- 55.(1) Definition of "pyramid selling"
- For the purposes of this section, "scheme of pyramid selling" means
- (a) a scheme for the sale or lease of a product whereby one person (the 'first' person) pays a fee to participate in the scheme and receives the right to receive a fee, commission or other benefit
- (i) in respect of the recruitment into the scheme of other persons either by the first person or any other person, or
- (ii) in respect of sales or leases made, other than by the first person, to other persons recruited into the scheme by the first person or any other person; and
- (ii) in respect of sales or leases made, other than by the first person, to other persons recruited into the scheme by the first person or any other person; and
- (b) a scheme for the sale or lease of a product whereby one person sells or leases a product to another person (the 'second' person) who receives the right to receive a rebate, commission or other benefit in respect of sales or leases of the same or another product that are not
- (i) sales or leases made to the second person,
- (ii) sales or leases made by the second person, or
- (iii) sales or leases, made to ultimate consumers or users of the same or other product, to which no right of further participation in the scheme, immediate or contingent, is attached.
- (ii) sales or leases made by the second person, or
- (a) a scheme for the sale or lease of a product whereby one person (the 'first' person) pays a fee to participate in the scheme and receives the right to receive a fee, commission or other benefit
- 55.(2) Pyramid selling
- No person shall induce or invite another person to participate in a scheme of pyramid selling.
- 55.(3) Offense and punishment
- Any person who contravenes subsection (2) is guilty of an offense and liable
- (a) on conviction on indictment, to a fine in the discretion of the court or to imprisonment for a term not exceeding five years or to both: or
- (b) on summary conviction, to a fine not exceeding twenty-five thousand dollars or to imprisonment for a term not exceeding one year or to both.
- (b) on summary conviction, to a fine not exceeding twenty-five thousand dollars or to imprisonment for a term not exceeding one year or to both.
- (a) on conviction on indictment, to a fine in the discretion of the court or to imprisonment for a term not exceeding five years or to both: or
- 55.(4) Where selling permitted by province
- This section does not apply in respect of a scheme of pyramid selling that is licensed or otherwise permitted by or pursuant to an Act of the legislature of a province.
