06/10    29 January 2010

The OFT has brought charges against six women from the Bristol area in connection with its investigation into a suspected unlawful pyramid scheme.

Hazel Cameron, 50; Susan Crane, 63; Mary Nash, 61; and Jennifer Smith-Hayes, 65, all of Bristol and Laura Fox, 65, of East Harptree, and Carol Chalmers, 63, of Weston-super-Mare, will appear at Bristol Magistrates Court on 10 February 2010 on charges of having established, operated or promoted an unlawful pyramid promotional scheme, having invited another to join a chain gift scheme, and having knowingly participated in the promotion, administration or management of a chain gift scheme between September 2007 and April 2009.

These charges follow those brought against five other women: Tracy Laurence, Sally Phillips, Rhalina Yuill, Rita Lomas and Jane Smith who previously appeared at Bristol Magistrates Court on 9 December 2009.

NOTES

1. The OFT is working closely with South West Scambusters, Bristol Trading Standards and Avon and Somerset Police in the ongoing case.

2. The investigation was launched in January 2009 with the arrests of three women. Further arrests were carried out in April 2009. Tracy Laurence, Sally Phillips, Rhalina Yuill, Rita Lomas and Jane Smith are due to be committed for trial at Bristol Magistrates Court on 17 March 2010.

3. See press releases 17-09, 48-09, 121-09, 133-09 on the OFT website.

4. Schedule One of the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) prohibits the establishment, operation or promotion of any scheme where money is made primarily from introducing other people into the scheme rather than from the sale of goods and services. Breach of the prohibition is an offence under Regulation 12 and is punishable by up to two years imprisonment and/or an unlimited fine.

5. The CPRs contain a general prohibition against unfair commercial practices and in particular prohibitions against misleading actions, misleading omissions and aggressive commercial practices. The Regulations are enforceable through the civil and criminal courts.

6. Sections 43(1)(a) and 43(1)(b) of the Gambling Act 2005 (GA05) make it an offence to invite another to join a chain gifting scheme or to knowingly participate in the promotion, administration or management of a chain gifting scheme. A person guilty of such an offence is liable on summary conviction to imprisonment not exceeding 51 weeks and/ or a fine of up to £5000.

7. The case is still ongoing and as such no assumption should be made that any person has committed an offence.

8. Information on the most common scams and advice on how to avoid them is available on the Consumer Direct website or by calling 08454 04 05 06. Consumer Direct is a telephone and online consumer advice service funded by government and managed by the Office of Fair Trading. It operates in partnership with local authority Trading Standards Services to offer consumers clear, practical and impartial advice and information. Consumer Direct has around 400 trained advisors in 12 contact centres across England, Wales and Scotland.