The Pyramid Selling Schemes Regulations 1989

Contents of written contracts

7.  The written agreement referred to in regulation 6 shall contain:–

(a) 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;

(b) 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;

(c) a description of the goods or services which form the subject of the scheme;

(d) an indication whether the transactions to be effected under the scheme by any persons who may participate are to be effected in the capacity of servant or agent of the promoter or promoters or one of the promoters or as a principal;

(e) a warning which complies with the following –

(i) it includes the words set out in Part II of the Schedule hereto;

(ii) those words are inserted in an area outlined in the manner indicated in Part II of the Schedule hereto;

(iii) the width of the outlined area is not less than 90 mm, its height is not less than 30 mm and the thickness of the outline is not less than 1 mm;

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

(v) 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;

(vi) the words are afforded no less prominence than that given to any other information in the document apart from the heading to the document and any information inserted in handwriting; and

(vii) the words are printed immediately above the space for the participant`s signature; and

(f) the rights of participants in connection with termination set out in Regulation 8.