Jacquelyn Lynn - Online Consumer Advice and Commentary

Jacquelyn Lynn is a business writer whose dynamic books and insightful articles have been helping business owners and managers work smarter and more profitably for more than two decades. She is the author of Entrepreneur’s Almanac, Online Shopper’s Survival Guide and co-author of Make Big Profits on eBay, as well as a regular contributor to Entrepreneur magazine. For more information and for the link to her business blog, visit www.jacquelynlynn.com.

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Location: Central Florida

Saturday, April 29, 2006

Gifting Clubs are Illegal Pyramid Schemes

If you’ve been approached to join a “gifting club,” your best answer is “thanks, but no thanks.”

Gifting clubs are a scam spreading through the mid-Atlantic states and the Pacific Northwest. People pay to join by giving a cash “gift” to the highest-ranking club members. They’re told that if they recruit additional members, their own ranking will rise and they’ll receive money—eventually far more than they initially paid to join the club.

This is an illegal pyramid scheme. Certainly it sounds attractive—make money and new friends at the same time. And the person recruiting you could be someone from your neighborhood or even your church.

If you get involved with a gifting club, you will likely lose your money and could even face criminal prosecution. For more information, and to find out how to file a complaint if you’ve been approached by someone recruiting for a gifting club, click here to visit the Federal Trade Commission’s page on the issue.

Jacquelyn Lynn


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