Pyramid promotional schemes

The Senate Civil Law Committee heard Sen. Messmer’s SB 283 on pyramid promotional schemes. Sen. Messmer explained that the bill removes references to pyramid promotional schemes in the deceptive consumer sales law and addresses pyramid promotional schemes in a separate law. It eliminates the private cause of action for a consumer deceived by a pyramid promotional scheme. The bill provides for the enforcement powers of the Attorney General with respect to pyramid promotional schemes and increases the maximum amount of a civil penalty that may be imposed upon a pyramid promotional scheme to $10,000.

Three amendments, including one which struck the criminal law provisions from the bill, were adopted by consent.  The bill passed as amended 5-0.

Read the bill at