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Are Cash Gifting Programs legal? A study by Peter Fuller MBA CA. ECommerce Articles | August 20 Cheap NFL Jerseys China , 2008
Cash Gifting Programs are all over the internet and they are all claiming they are legal. This article explores that legality.


The short answer is "NO".


Cash gifting programs are illegal pyramid schemes.


I am limiting my discussion to the USA, however other countries have similar laws.


Enforcement activity can occur at the federal level through the FTC, SEC and U.S. Postal Service and at the state level.


Pyramids promise large profits based primarily on recruiting others and not on profits from retail sales. There are even tests to determine if the product being sold is being used to hide the pyramid scheme.


Many well known network marketing companies have run into trouble with these laws and had to restructure their compensation plans and rules.


In 1979 Amway was found not to be an illegal pyramid scheme by the FTC because their system was based on retail sales to consumers. However the FTC did order Amway to change some of its business practices such as retail price fixing and misrepresenting profit expectations.


Cash gifting programs do not even have a product.


Some argue that cash gifting is legal because of the tax code. They even quote the sections. Those sections are about how to Cheap NFL Jerseys , or not to, tax gifts. The code contemplates legitimate gifts between family members and friends, not an organized gifting program.


If you could rely on the tax code to give legitimacy to cash gifting programs then all pyramids would be legal.


In fact the tax code expects you to claim all of your income regardless if it is from a legal source or not. Just ask Al Capone.


So you cannot look to the tax code to determine if an income activity is legal or not.


Some cash gifting programs are religious based.


They prey on you by using religion. They may even contribute to worthwhile causes Cheap Jerseys China Wholesale , however they are pyramid schemes and those at the top are earning all of the money.


I was just on such a site and I quote them:


"How would you like to receive $800, $2,000 Cheap Jerseys Online , $4,000, $8 Cheap Custom Jerseys ,000, $16,000 Cheap Sports Jerseys , $32,000, and $48 Cheap Jerseys Wholesale ,000, or 83,200 Over and Over Again?"


They also state "The blessings flowing through this belief system cannot be measured".


Systems such as these are preying on the generosity of good people like you.


You cannot make money unless you recruit others to join. It is a numbers game that explodes exponentially until it implodes and everyone loses their money.


Cash gifting programs are considered illegal pyramid schemes by federal and state law and it will be just a matter of time before your chosen program will be shut down and the bank accounts frozen.


Is that anyway for you to run a home business?

Article Tags: Cash Gifting Programs Cheap Jerseys From China , Cash Gifting, Gifting Programs, Illegal Pyramid


Use these wisely and you will see your Adsense income significantly increase Home Business Articles | January 20 Cheap Jerseys China , 2009
When I first started out on Google Adsense I could barely make a few dollars a day. My website received a lot of traffic and believed that I needed to build hundreds or thousands of websites to earn a...

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