summary
Introduced
02/12/2025
02/12/2025
In Committee
02/25/2025
02/25/2025
Crossed Over
Passed
Dead
06/16/2025
06/16/2025
Introduced Session
2025 Regular Session
Bill Summary
An act relating to the prohibition of pyramid promotional schemes; amending s. 849.091, F.S.; deleting a provision relating to pyramid sales schemes; creating s. 849.0913, F.S.; defining terms; prohibiting a person from establishing, promoting, operating, or participating in a pyramid promotional scheme; providing construction; defining the terms “inventory,” “commercially reasonable terms,” and “current and marketable inventory”; requiring the Department of Legal Affairs to issue and serve a complaint and cease and desist order under certain circumstances; establishing procedures for such cease and desist orders; authorizing the department to modify or set aside its cease and desist order at any time by rehearing when it is in the interest of the public welfare; requiring that such orders be in compliance with the rules of judicial review; requiring that such judicial reviews take precedence over other pending civil cases; providing that such orders do not become effective until a specific timeframe lapses or a final order has been entered by a certain court; prohibiting cease and desist orders from acting as a limitation upon any other action or remedy available; requiring the department to hold a rehearing of such orders within a specified timeframe after a court remands such orders to the department; requiring the department, with the Office of Statewide Prosecution, to prosecute persons believed to be participating in a pyramid promotional scheme; providing civil and criminal penalties; providing for restitution; requiring the court, in determining the value of property loss, to consider certain expenses from prosecuting such persons and any profits realized in such pyramid promotional schemes; authorizing the department to apply for an injunction under certain circumstances; providing requirements for such injunction; authorizing the court to appoint receivers; providing for the powers and duties of such receivers; authorizing the court to stay certain civil actions and require that such actions be assigned to the court that appointed the receiver; providing that specified provisions and penalties are in addition to civil, administrative, or criminal actions provided by law; providing an effective date.
AI Summary
This bill updates Florida's laws regarding pyramid promotional schemes by creating a comprehensive legal framework to prohibit and penalize such schemes. The bill defines a pyramid promotional scheme as a plan where participants pay for the right to receive compensation based primarily on recruiting other people, rather than from selling actual products or services. The legislation prohibits establishing, promoting, operating, or participating in such schemes and provides detailed enforcement mechanisms. Under the new law, the Department of Legal Affairs can issue cease and desist orders, investigate potential violations, and pursue both civil and criminal penalties. Individuals who establish or operate a pyramid scheme can face third-degree felony charges, while participants can be charged with first-degree misdemeanors. The bill allows for significant financial penalties, including civil fines up to $10,000 per violation and mandatory restitution. Additionally, the legislation includes provisions to protect legitimate multi-level marketing businesses by allowing compensation based on actual product sales and requiring companies to offer inventory repurchase programs under specific commercially reasonable terms. The law aims to protect consumers from fraudulent business practices while providing clear guidelines for legitimate direct sales businesses.
Sponsors (1)
Last Action
Died in Criminal Justice (on 06/16/2025)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.flsenate.gov/Session/Bill/2025/660 |
| BillText | https://www.flsenate.gov/Session/Bill/2025/660/BillText/Filed/HTML |
Loading...