Pyramid Scheme? Chain mail letter 'please put me on your mailing list?'?

Question

Have you ever received one of these letters? You have 6 names you are supposed to send $1 to with a note asking them to 'add me to your mailing list', then add your name to the bottom of the list and send out 200 letters?

I received one of these in the mail yesterday and went online to do a little research. It looks like this is a pyramid scheme, which makes it illegal.

HOWEVER, THIS IS MY QUESTION:

If you have a forum like this one, and ask people if they are willing to participate, and they say 'yes', is it still a scheme? I mean, if everyone is completely up front with their expectations and actions, why is it a pyramid scheme? If free will is an intrinsic right of every person, and if this isn't hurting anyone, but helping everyone by making money, why is it illegal? I read that pyramid schemes are a 'crime of persuasion'. How are you persuaded if you are up front and understand the expectations and consequences?

Answer 1

It's still illegal, because the entire transaction is illegal.



Pyramid schemes are considered fraudulent because the last several levels of participants never get paid. It's NOT correct to assume that "this isn't hurting anyone, but helping everyone by making money, why is it illegal?"



Think about it...if "everyone" is making money, where is the money coming from? All a pyramid scheme does is transfer money around not create money.



A pyramid scheme dies when you run out of new people to bring into the scheme (either because the whole community has now bought in, or because everyone who was willing to buy into / fall for a pyramid scheme has bought in, and the remaining people in the community are not willing to join).



As a result, only the top few levels of the pyramid get rich. The bottom levels (and often the middle levels) never get paid because the scheme runs out of possible participants long before the time their name reaches the top of the payout list.

Answer 2

If you are the top person of the pyramid then you get the most $$$, but sinc eyou are inly partisipating you are just giving the person at the top more $$$. You earn very little. You are just a block holding uop the person on top who gets the most, thats why its called a pryamid scheme.

Answer 3

there's a clever asserting, "If it is too reliable to be actual, it probably is." you're good to question it. Throw it out, it may desire to be an attempt at some form of identification theft, or basically an attempt to get funds from you which you will by no ability see back. Throw it away. basically simply by fact somebody cites Oprah or different action picture star, does not propose they are being hassle-free. i could desire to quote Tom Arnold, yet that doesn't make this undergo any extent further valid. basically save your self somewhat some grief and save you funds. Throw the letter out and forget approximately it.

Answer 4

It is still an illegal scheme