MS SB2805

Creates new sections 75-24-71 through 75-24-77 to prohibit pyramid promotional schemes and define key terms including "bona fide inventory repurchase program," "inventory loading," and "pyramid promotional scheme."

Establishes that entities operating legitimate multi-level marketing plans must implement a bona fide inventory repurchase program requiring repurchase of current, marketable inventory within 12 months at not less than 90% of original net cost and must not engage in inventory loading.

Requires entities to clearly disclose in recruiting literature, sales manuals, and contracts which inventory is excluded from repurchase programs (such as seasonal, discontinued, or special promotion products).

Provides that the Attorney General may seek injunctive relief against violations and establishes criminal penalties of up to $500 fine and/or up to 6 months jail time for willfully violating pyramid scheme prohibitions.

Removes references to pyramid schemes from existing franchise regulation sections and becomes effective July 1, 2018.