Vote Smart's Synopsis:

Vote to pass a bill that prohibits pyramid promotional schemes and establishes applicable penalties.

Highlights:

• Prohibits a person from establishing, promoting, or operating a pyramid promotional scheme (Sec. 1).

• Defines “pyramid promotional scheme” as a plan or operation by which a person provides consideration for the opportunity to receive compensation that is primarily derived from the introduction of other persons into the plan or operation and not from the sale or consumption of goods, services, or intangible property by persons introduced into the plan or operation (Sec. 1).

• Specifies that a “pyramid promotional scheme” includes a plan or operation by which the number of persons who may participate is limited either expressly or by the application of conditions affecting the eligibility of persons to receive compensation under the plan or operation (Sec. 1).

• Specifies that a civil penalty of up to $40,000 per violation may be imposed by a court against a person found to have violated this bill (Sec. 2).

Full Bill Text