Editorial answer for reference:
Quote:
To explain as simply as possible, the first thing someone should understand is that, once they choose to let their Neopet go (even if it's to a friend), the Neopet no longer belongs to them. Therefore, they need to be sure that letting their Neopet leave the account is what they want, because this is solely their responsibility and choice. Secondly, as of this writing, the selling of Neopets and trading of Neopets for items, Neopoints, etc. is also against the rules. Therefore, if you are caught doing it you could lose the Neopet and your account.
I think it's legal, or at least it should be. Saying it's illegal means if you give someone a pet, they absolutely cannot give you one. That would make what I did illegal: Sending one of my 4 pets to my side, and sending another pet from that side to my main (for an avatar).
I think the editorial was just saying "Yes you can, but beware. Once the pet is out of your account, it's not yours. Be sure you trust who you send it to." It used to be like that when people would send avatar items to each other, but recently they've said that if there was an agreement and someone walked off with the item is now considered scamming. It's a pretty gray area, but I don't think trading pets is illegal. I don't know why they shoved that PSA about items/neopoints into the answer, but that may be the part that is confusing everyone.
If you are trading pets, I'd get it in Neomail or on the boards, somewhere in writing so that you can prove there was a mutual agreement. That way you could maybe report them for scamming if they don't hold up their end of the deal.
And the FAQ in the post above mine just seals the deal to me.