§ Mr. HansonTo ask the Secretary of State for the Home Department (1) what action has been taken to facilitate tracing of promoters of chain letter earnings schemes; and what further measures he plans;
(2) what representations have been made to him regarding chain letter earnings schemes in 1993–94; and if he will make a statement;
(3) how many complaints he has received with regard to participants who have suffered financially as a result of chain letter earnings schemes in 1993–94; and if he will make a statement;
(4) what action is being taken to increase the protection of the participant in chain letter earnings schemes;
(5) if he will make a statement on chain letter earnings schemes; and what steps he has taken to maximise the awareness of the possible offences that can be committed under these schemes.
§ Mr. Peter LloydI am replying because chain letters involving money-making schemes have in some cases been held by the courts to be illegal lotteries under provisions now contained in the Lotteries and Amusement Act 1976 because they have the overall object of distributing money by chance. The schemes are also subject to the general criminal law on theft and fraud, for the enforcement of which—including the tracing of suspected offenders—the police are responsible.
Whether a particular scheme is an illegal lottery is a matter which only a court could decide. The advice given 616W to recipients of "get-rich-quick" schemes is to ignore their claims or, if they wish to take matters further, to pass offending materials to the police for consideration and possible investigation. Information on prosecutions under the 1976 Act involving chain letter schemes is not held centrally.
During 1993–94 the Home Office received seven letters from Members of Parliament on behalf of constituents and four letters from members of the public about chain letter schemes. None of the letters concerned participants who had suffered financially.