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Regulation 4 Contents of advertisements etc

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

Subject to paragraph (2) of this regulation, a person shall not issue, circulate or distribute any document, being an advertisement, prospectus, circular or notice, containing –

(a)

any invitation to persons to become participants in a selling scheme; or

(b)

any information likely to lead directly or indirectly to persons becoming participants in such a scheme, UNLESS –

(i)

it states the date from which the scheme first operated in the United Kingdom or, in the case of a proposed scheme, the date from which it is proposed to operate it;

(ii)

it states the name and address of the promoter, or in the case of a scheme promoted by more than one person, the names and addresses of all the promoters;

(iii)

it describes the goods or services which form the subject of the scheme;

(iv)

it states whether the transactions to be effected under the scheme by any persons who may participate are to be effected in the capacity of a servant or agent of the promoter or promoters or one of the promoters or as a principal; and

(v)

it contains a warning which complies with the following:

(aa)

it includes the words set out in Part I of the Schedule hereto;

(bb)

those words are inserted in an area outlined in the manner indicated in Part I of the Schedule hereto;

(cc)

the width of the outlined area is not less than 80 mm, its height is not less than 30 mm and the thickness of the outline is not less than 1 mm;

(dd)

the heading “STATUTORY WARNING” is in capital letters not less than 3 mm high;

(ee)

the words are easily legible and the lettering of the document is of a colour which is readily distinguishable from the colour of the paper on which it is printed; and

(ff)

the words are afforded no less prominence than that given to any other information in the document apart from the heading to the document.

(2)

This regulation does not apply to any document –

(a)

which does not indicate the financial benefits which will or may be obtained from participation in a selling scheme; or

(b)

which forms part of a newspaper or magazine; or

(c)

which is handed to a person in a public place.