Boy, it sounds like I was one of the very lucky ones. I checked the FTC site and they are targeting the chains that promise money or selling something. Exchanging pieces of fabric is not illegal under their definations but it does sound like most people have not had good experiences with them. The lady that sent it to me got enough 5" purple squares to do a lap quilt. I got fabric from all the ones I sent to and from the next 2 generations. Not all that was promised but I was happy with it. Since I found this thread, however, I have not done anything outside the swaps here. I absolutely hate the emails that tell you 'you're not a good friend' if you don't pass it on or versions like it. My FIL is famous for sending me those even though I've told him not to. Guess they made the Delete button for a good reason.
Wendy B