It promises something for nothing: send one gift, receive up to a dozen in return. But the “Secret Sister” gift exchange circulating on Facebook feeds every holiday season has a legal dark side — attorneys say participating could amount to a felony.
The viral posts invite women to join a gift-exchange chain: buy a $10 gift for the “secret sister” at the top of the list, add your name, and supposedly receive piles of presents from strangers down the line. Some participants swear by it. “I got this ring, when I saw it, I was shocked,” said one woman who stands by Secret Sister as harmless holiday fun.
Why It’s a Pyramid Scheme
Attorneys and consumer experts see it differently. The structure — pay in, recruit others below you, profit only from those who join after you — fits the definition of a pyramid scheme, which is illegal in most states. Because each round of recruits must keep growing to pay off the last, the vast majority of participants end up with nothing while the people at the top collect the gifts.
“She’s probably just at the top of the pyramid scheme, and the ones on the bottom are getting scrooged,” one lawyer explained of lucky participants. “It’s considered racketeering and you could face up to a year in jail.”
Beyond legal exposure, sharing the post typically means handing your name, address and personal details to strangers. Consumer advocates’ advice this season: skip the chain, and if you want to exchange gifts, do it with people you actually know.