I've just received this from an optically aware non-bot who has asked me to share:
Yesterday, the discussion on the Mumsnet threads turned to why the sign-up fees for 'MLM' rackets have usually been capped in the UK at slightly less than £200.
MN members assumed that anything over £200 must be illegal and some began searching in the Trading Schemes legislation. However, they didn't find anything; because any payments to simply join a trading scheme are, in fact, unlawful in the UK.
As you may or may not know, it is a criminal offence in the UK to run any trading scheme which takes (significant) sign-up/renewal fees. What doesn't seem to be common knowledge is that even this ill-written technical law is not really enforced.
In recent years, UK regulators (Companies Investigation Branch) have tended to ignore unlawful sign-up and renewal fees under £200; only because these haven't attracted complaints; and because when CBI half-heartedly tried to close down 'Amway' for breaking this technical law, they failed.
After many years of well-informed complaints, 'Amway UK Ltd.' was finally prosecuted in 2007/8 under UK Trading Schemes and Lotteries legislation on the grounds that it had been taking unlawful sign ups and renewal fees for more than 30 years.
Yet these fees were actually less than £100. 'Amway's' false-justification at the time for these illegal payments had previously been that they were nominal and were only to cover administrative costs.
To dodge closure, 'Amway UK Ltd' immediately stopped all unlawful sign-up, and renewal fees and pretended to the High Court that its company officers had been completely unaware that these payments (and other practises) were unlawful, and that as soon as they were made aware by regulators, they had immediately reformed the 'Amway' scheme voluntarily, to bring it into line with UK Trading Schemes legislation.