LANCASHIRE County Council's Trading Standards is warning people of the return of the pyramid selling scams.

Trading Standard's is now receiving enquiries which indicate that these schemes are returning to Lancashire.

The schemes work on a 'pyramid recruitment' principle based on individual contributions or "gifts", typically of £3,000, given to a member of a network (usually a family member or friend). In return, each participant must recruit several other participants and are promised multiples of their recruitment fees, typically up to £24,000, as they progress through the network hierarchy.

However, the continuation of the scheme is dependent on new participants continually joining.

The danger is that these types of networks break down as the pool of new investors quickly dries up. Participants joining the scheme then stand a good chance of losing their original contribution.

Schemes which do not involve any trading products or services nor any form of company structure or control are difficult to control under current UK legislation on pyramid schemes or multi level marketing and the Department of Trade and Industry is currently looking at how such schemes could be dealt with.

County Councillor Tim Ormrod, Cabinet Member for Public Protection and Rural Affairs, said, "These pyramid schemes prey on people's expectations to earn considerable amounts of money.

"However, because of the past problems with these schemes I am concerned that people may lose thousands of pounds of hard earned cash. I want Lancashire consumers to be aware of these schemes and of the risks associated with them".

Anyone wanting more information can call Steven Brimble, Principal Trading Standards Officer, on 01772 263844