Section 150: Chain-gift schemes

150. Chain-gift schemes (1) Any person who— (a) invites another to join a chain-gift scheme; or (b) knowingly participates in the promotion, administration or management of a chain-gift scheme, shall commit an offence and shall, on conviction, be liable to a fine not exceeding 200,000 rupees and to imprisonment for a term not exceeding 2 years. (2) An arrangement is a “chain-gift” scheme where— (a) in order to participate in the arrangement a person makes a payment to one or more other participants a “joining fee”; and (b) each person who participates in the arrangement— (i) is required or invited to invite others to participate; and (ii) is encouraged to believe that he will receive the “joining fees”, or part of the joining fees, of other participants, to an amount in excess of the “joining fee” paid by him. (3) For the purposes of subsection (2)— (a) “payment” means a payment of money or money’s worth, but does not include the provision of goods or services; and (b) it is immaterial whether a payment is made directly or through a person responsible for managing or administering the scheme. (S. 150 came into operation on 6 December 2007.) [Issue 9] G2 – 70 Revised Laws of Mauritius