Chain E-mail - Legality

Legality

A chain letter may qualify as a fraudulent activity, as in the case of a pyramid scheme which asks recipients to funnel money up the chain while requesting the letter be distributed to multiple new recipients.

The legality of chain letters comes into question when they attempt to funnel monetary value to a single source. When a chain letter suggests a game of chance or a lottery with an opportunity for financial gain it is considered fraudulent under Title 18, United States Code, Section 1302, the Postal Lottery Statute. Chain letters that ask for items of minor value such as business cards or recipes are not covered by this law.

If pyramid scheme chain letters are sent through email it may constitute wire fraud. An email chain letter may contain trojans or another type of computer virus which is covered under the Computer Fraud and Abuse Act (CFAA) . This law makes it illegal to distribute computer codes or place them in the stream of commerce if their intent is to cause damage or economic loss.