SB 902 - Wallingford, Wayne
Modifies provisions relating to pyramid sales schemes
Bill Details
Sponsor
LR Number
4998S.01I
Title
SB 902
House Handler
N/A
Journal Page
Effective Date
August 28, 2020
Committee
Current Status
Second Read and Referred S Small Business and Industry Committee
Quick Links
Amendments
No amendments available
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.
JAMIE ANDREWS