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FL S0712
Bill
Status
12/3/2025
Primary Sponsor
Clay Yarborough
Click for details
AI Summary
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Creates the "Direct Sales Consumer Protection Act" establishing new regulations against pyramid promotional schemes, defined as plans where compensation is based on recruiting others rather than actual product sales and consumption
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Prohibits establishing, promoting, operating, or participating in pyramid promotional schemes, with penalties of a third-degree felony for operators/promoters and first-degree misdemeanor for participants
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Authorizes the Department of Legal Affairs to issue cease and desist orders, with civil penalties up to $10,000 per violation for those who disobey final orders
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Exempts legitimate direct sales operations that base compensation on actual product purchases for personal use or resale, provided they don't require excessive inventory purchases and offer a 90% buyback program for unsold inventory within 12 months
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Empowers courts to issue injunctions without bond, appoint receivers to take control of violating businesses, and order restitution including investigation costs and disgorgement of profits from convicted offenders
Legislative Description
Prohibition of Pyramid Promotional Schemes
Last Action
Now in Appropriations Committee on Criminal and Civil Justice
2/12/2026