Prohibition of Pyramid Promotional Schemes

Summary

The bill adds a new statute that defines and bans pyramid promotional schemes, treating them as lotteries. It criminalizes anyone who creates, promotes, operates, or participates in such schemes, with felony penalties for organizers and misdemeanor penalties for participants, plus restitution. The measure also clarifies exceptions for legitimate multi‑level marketing plans that meet specific inventory‑repurchase rules.

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