Trading Schemes Act 1996 and Trading Schemes Regulations 1997
Trading schemes, also known as direct selling schemes, multi-level marketing or various other names, involve participants earning money by selling the scheme’s goods or services, often from home. These two pieces of legislation set out the rules which a trading scheme should follow.
Certain information must be included in advertisements for such schemes and in contracts which anyone considering joining the scheme must receive. In the first seven days after signing the contract you should not be asked to pay the scheme more than £200 in total and you have cancellation rights up to 14 days after signing the contract. It is a criminal offence to run a scheme which does not comply with these rules.