Substitute House Bill 329 Summary

• Amends Ohio Revised Code sections 1333.91-1333.94 to modify the definition and regulation of pyramid promotional schemes, replacing the term "pyramid sales plan or program" with "promotional scheme" throughout.

• Redefines a pyramid promotional scheme as any plan where individuals pay consideration for the chance to receive compensation derived primarily from recruiting others rather than from actual sales or consumption of products or services by non-participants.

• Clarifies that "consideration" does not include time or effort spent in pursuit of sales or recruiting activities, and removes the $25 annual limit on promotional and administrative fees.

• Allows individuals who paid consideration to participate in a prohibited pyramid scheme to recover their payment plus reasonable attorney fees from any participant who received compensation from recruiting them.

• Designates violations of the pyramid scheme prohibition as unfair or deceptive consumer practices and empowers the Ohio Attorney General to seek injunctions with penalties up to $5,000 per day of violation and to enforce the law using all available consumer protection remedies.