The Elf on the Shelf rules are simple but important for the success of the magical tradition. They are as follows: 1. The elf is not a toy and should never be touched or played with by children. 2. The elf can only move around when children are not present. 3. The elf should be placed in a different location each morning to surprise children and create a sense of magic. 4. The elf is not allowed to talk or interact with children directly.