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FL S0660
Bill
AI Summary
- Creates s. 849.0913, F.S., defining and prohibiting pyramid promotional schemes where participants pay consideration for compensation based primarily on recruiting others rather than selling products, goods, or services
- Exempts plans where compensation is based on actual product purchases for personal use, consumption, or resale, provided the plan does not require salespersons to purchase excessive inventory and offers a repurchase program at no less than 90% of original net cost within 12 months
- Establishes criminal penalties: a third-degree felony for establishing, promoting, or operating a pyramid scheme, and a first-degree misdemeanor for participating in one, with mandatory restitution including investigation/prosecution costs and disgorgement of profits
- Authorizes the Department of Legal Affairs to issue cease and desist orders (with at least 15 days' notice and a hearing under chapter 120) and imposes civil penalties of up to $10,000 per violation for disobeying a final order
- Empowers the department to seek temporary or permanent injunctions without bond in circuit court, including appointment of receivers to take custody of violators' property and business records, and takes effect July 1, 2025
Legislative Description
Prohibition of Pyramid Promotional Schemes
Last Action
Died in Criminal Justice
6/16/2025
Full Bill Text
No bill text available