Warning

To all those considering a business opportunity in network marketing.

Over the past twelve months there has been a sharp increase in the number of online business opportunities being offered to UK citizens by business promoters in the US and elsewhere and who have neither a UK office nor UK based management. These promoters encourage registration and the payment of joining fees through an overseas website.

Whilst this practice is not necessarily unlawful, it could be unlawful if the distributor contract and marketing material does not conform the UK Trading Schemes Act 1996 and Trading Schemes Regulations 1997. It has come to the attention of the DSA that many recent schemes do not comply with UK law. The risk to any participant in the UK is this. If they encourage others to participate in the scheme and make payment to the promoter, then they, as well as the promoter, could be liable to prosecution.

The DSA's advice is to anyone interested in a networking or multilevel business opportunity, is to check whether the company is a member of the UK DSA. If it is, they can rest assured that the business opportunity does comply with UK law. Remember that the promoter's membership of the US DSA or any other worldwide DSA is not a safeguard of legal compliance. They may be lawful in their home market but UK law differs from that in the US and other worldwide markets.