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eBay does not permit the listing of multi-level marketing schemes, pyramid, matrix and all similar trading schemes, including online payment randomisers. Such schemes can be highly problematic and are regulated in the UK by the Fair Trading Act 1973, as amended by the Trading Schemes Act 1996 and the Trading Schemes Regulations 1997. It is a criminal offence to persuade someone to pay into a scheme by promising benefits if they recruit further people.
In addition to restrictions in the Sales of Goods legislation, in Ireland certain trading schemes are regulated under the Trading Stamps Act 1980. In addition "Inertia Selling" is a criminal offence under S.I. No. 207 of 2001.
Multi-level Marketing
Multi-level marketing schemes include any business in which a person receives proceeds from both his or her own sales, as well as those of recruited members. (We consider online payment randomisers to be a type of multi-level marketing scheme because the majority of commissions are paid for by recruitment of new members, and typically operate by random placement within the scheme.)
Pyramid Schemes
Pyramid schemes generally ignore the actual selling of products and services, and concentrate on the commissions one could earn by recruiting new distributors. Pyramid schemes may or may not involve the sale of products.
Matrix Schemes
eBay prohibits the listing of business models that involve the exchange of money primarily for being added to a waiting list for a product, if the person at the top of the list receives a product only once a set number of people have joined below him or her.
eBay will end any listings or advertisements for all multi-level marketing, pyramid, matrix and similar trading schemes. Repeat violations may result in the suspension of a user's account.
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