I’m seeing the secret sister gift exchange all over Facebook right now. I have a few friends who are participating, and it just makes me wince. Simply put, the secret sister gift exchange is a pyramid scheme, and illegal.
A lot of people don’t understand that. $10 seems like such a small risk, and it is. But the odds of receiving the promised 6 or 36 gifts is poor, especially since it depends not only on how well you recruit people into it, but how well your recruits bring people into the deal as well.
How Is The Secret Sister Gift Exchange Supposed To Work?
The basic premise is so simple. You send your gift to the person whose name appears at the top of the list you receive. When you send the list to your recruits, you remove the person you sent a gift to, and put the second person’s name at the top. Your name becomes the second name on the list.
There is often a push to do this quickly so that everyone gets their gifts in time for Christmas. Your six people send to the top of the list, and their people, now totaling 36 people, send gifts to you. It sounds wonderful.
Legally, however, this falls under the same laws as chain letters and lotteries. It’s not something you want to mess with. Not many people will get in legal trouble for doing the secret sister gift exchange, but why try your luck? It’s a federal crime, according to the Post Office. It also may be a crime by the laws in your state.
If you have any doubts, check out this notice on Facebook from the USPS. It explains things pretty well.
Do The Math
If you do the math on the secret sister gift exchange, you can quickly see why it will quickly run out, even if everyone finds enough people and everyone sends their gifts. Both of those are pretty iffy themselves.
Six people each finding six people means they need 36 people. Those 36 people need a total of 216 people, who need 1296 people. Keep this going for five more levels, and you need 10,077,696 people. That’s a difficult number, but not completely impossible. Highly unlikely, of course.
It only takes 13 levels to get beyond the entire population of the planet. Even assuming some people participate more than once, it’s not going to happen.
This means it won’t take long at all for people to have trouble finding someone to send gifts. Many people who try to join in won’t get anything in return. Most will simply fail to get a full six people sending gifts, and their people in return will have trouble finding enough people.
You might get a few gifts, but usually, that’s it. Between the number of people needed for everyone to get their gifts and the difficulty in recruiting people, it’s just not going to go that well.
There are also gift exchanges where the focus is on wine. It has the same problem as this one. Just don’t join in. The wine version also presents challenges in shipping it legally.
Talking Friends Out Of The Secret Sister Gift Exchange
It can be hard to call this out as a scam. I’ve seen people call friends names for trying to explain why the secret sister gift exchange doesn’t work or is illegal.
I would imagine that most people have trouble admitting the problems with the gift exchange because they’re already invested in it. They’ve promised to send a gift to someone else, or have even sent it already.
It’s worth a try, even if the friend who posts the gift exchange won’t listen. Someone else might.
Be polite when you try to discourage friends from this. No one will respond well if they feel foolish. You should also remember that the people participating don’t mean to scam or cheat anyone. They’re trying to do something fun. No one in this means any harm by it.
That doesn’t change the legal issues. Or the fact that eventually there are people who won’t get anything in return.
Then there’s the risk in putting your personal information out there for random people. You may know all the people you recruit into the gift exchange, but it’s the people they recruit who will be sending you gifts, and they’ll get your name and address too. Are you comfortable with that?
Alternatives To The Secret Sister Gift Exchange
It may be better to suggest setting up a basic secret Santa gift exchange, where everyone in a group draws a name and buys for one other person. No grand promises of dozens of gifts. Just a simple gift exchange among friends. It’s much simpler and legal when you avoid the chain letter aspects of the secret sister gift exchange. Best of all, you know that everyone gets a gift.
If you want something to feel good about, donate to a local cause. There are lots of wonderful causes out there, and even a $10 donation will be welcome. You won’t get a gift back, but you will have done something good.
As illegal actions go, this is a minor one, and I doubt many people ever get prosecuted for it. But why take the chance when a simpler gift exchange works just fine?
The secret sister gift exchange isn’t the usual kind of scam I write about here, but it’s popular enough I consider it worth a mention. If you’d like to learn more about work at home scams, take a look at the ones I’ve covered on this site.