HB347 Summary

• Amends Alabama Code Sections 8-19-3 and 8-19-5 to expand definitions and prohibitions related to deceptive trade practices and pyramid sales structures.

• Adds new definitions including "bona fide inventory repurchase program," "inventory loading," and "pyramid promotional scheme" to clarify what constitutes illegal pyramid sales operations.

• Creates exception allowing participation plans where compensation is based on purchases of goods or services if the plan does not cause inventory loading and implements a bona fide inventory repurchase program.

• Requires bona fide inventory repurchase programs to be clearly described in recruiting materials and contracts, with repurchase of current inventory within 12 months at not less than 90 percent of original net cost.

• Becomes effective on the first day of the third month following passage and Governor approval.