The Pyramid Selling Schemes Regulations 1989

Contents of advertisements etc

5.—(1) A promoter of a selling scheme shall not issue, circulate or distribute a document to which regulation 4 applies which contains any statement which indicates or suggests that a participant will as a result of participation derive during any period a specified financial benefit or a financial benefit which will be greater than or not less than a specified sum unless the promoter at the time when he issues, circulates or distributes the document has evidence that the financial benefits indicated or suggested represent the financial benefits or sums actually obtained by one or more of the participants during the same period as a result of participating in the scheme.

(2) Any statement to which paragraph (1) of this regulation refers shall be accompanied by the following statement published with equal prominence and immediately underneath the first mentioned statement:– “The figures shown do not represent any automatic earnings. Actual earnings will depend on time and effort spent on the business and the total number of participants in the scheme.”