Regulation 2 Interpretation

In these Regulations—

• “the Act” means the Fair Trading Act 1973^f1

• “annual profit of the trading scheme” means for each financial year the net profit of the promoter or promoters of the trading scheme as shown in the accounts of the trading scheme.

• “chain letter” means any trading scheme under which a letter is sent to participants or prospective participants directly or indirectly instructing or requesting them to—

  1. (a)

     send monies or other benefits to at least one of the idividuals on a list of individuals, shown with their mailing addresses, which is contained in or accompanying that letter; and

  2. (b)

     carry on the chain by sending copies of the letter to other individuals not on the list and removing from the list any one name and address and adding their own to it.

• “participant” has the same meaning as in section 118(8) of the Act.

• “single tier trading scheme” means a trading scheme the only members of which are the promoter or promoters and one or more participants and under which, in the United Kingdom, either a single promoter or a single participant operates at one level and any other participant or participants of the trading scheme operate at the same level below such promoter or participant aforesaid.

• “trading scheme” has the same meaning as in section 118(8) of the Act.