SB 902
Modifies provisions relating to pyramid sales schemes
LR Number:
Last Action:
2/27/2020 - Second Read and Referred S Small Business and Industry Committee
Journal Page:
Calendar Position:
Effective Date:
August 28, 2020

Current Bill Summary

SB 902 - This act modifies provisions relating to pyramid sales schemes.

The act modifies the definition of "pyramid sales scheme", repeals the definitions for "other property" and "sale or distribution", and adds several new definitions to the provisions of law relating to pyramid sales schemes.

A plan or operation shall not be construed to be a pyramid sales scheme if the participants in the plan or operation give consideration in return for the right to receive compensation based upon purchases of goods, services, or intangible property for personal use, consumption, or resale if the plan or operation does not cause inventory loading, as such term is defined in the act, and the plan or operation implements a bona fide inventory repurchase program.

A bona fide inventory repurchasing program shall be clearly identified in recruiting literature, sales manuals, or contracts with independent salespersons.



No Amendments Found.