MO HB1841

Repeals and re-enacts section 407.400, RSMo, to clarify definitions related to pyramid sales schemes and franchise relationships in the intoxicating liquor industry.

Expands the definition of "franchise" to specifically include relationships between wholesalers and suppliers of intoxicating liquor, with or without trade name/trademark licensing or community of interest in marketing.

Clarifies that "franchise" does not apply to certain entities including warehouse sales operations, leased departments, places of original manufacture, or relationships without a fixed place of business in Missouri.

Declares the legislature's intent that the statute be interpreted consistent with Missouri Supreme Court decisions in High Life Sales Co. v. Brown-Forman Corp. and Brown-Forman Distillers Corp. v. McHenry, rather than the federal court's interpretation in Missouri Beverage Co., Inc. v. Shelton Brothers, Inc. (2012).

Defines "pyramid sales scheme" as any plan where participants pay consideration for the opportunity to receive benefits primarily based on recruiting additional participants, rather than on actual product sales volume.