Gifting schemes, on the other hand, are all about the payoff. Cash exchanges between members are not permitted. For example, instead of throwing out a large crop of sweet corn when it ripens all at once, you can offer it to your gift circle friends who need fresh produce. They may be private or public, members may or may not know each other, and they operate in a similar way: members assist each other in fulfilling wants and needs with their many resources.
They exist in many cultures and communities and help build relationships within those circles. They help people save money and waste fewer resources. Remember this: No matter how these are presented, promoting or knowingly participating in a cash-gifting scheme is illegal in Michigan. The road to participating in a gifting scheme is often paved with sound-good intentions and clever branding like “Women Empowering Women,” “Circle of Friends,” or “Secret Sister” - but just because it is called a gifting “circle” does not make it one. When people gather in person or online because they are recruited and the recruiter receives money or gifts for each person recruited, that is a gifting scheme - which is also an illegal pyramid scheme. When people get together in a circle to give each other gifts without exchanging any money, that is called a gifting circle.
Gifting Circles Good, Gifting Schemes Bad: How to Spot an Illegal Pyramid Schemeĭownload and print the designed version of this Consumer Alert What you need to know: