Bill > H0265

This bill aims to strengthen the prohibition of pyramid promotional schemes by creating a new section in Florida Statutes that clearly defines what constitutes such a scheme and establishes penalties. A pyramid promotional scheme is defined as a plan where participants pay for the opportunity to earn money primarily by recruiting new members, rather than through the actual sale of goods or services to consumers. The bill clarifies terms like "compensation" (payment for recruiting), "consideration" (payment or purchase of goods/services), and "participate" (contributing money without organizing). While it prohibits establishing, promoting, operating, or participating in these schemes, it includes exceptions for legitimate multi-level marketing plans that focus on product sales and offer reasonable buy-back policies for unsold inventory. Penalties are outlined, with operating or promoting a scheme being a felony and participating being a misdemeanor, and courts are mandated to order restitution to victims. These penalties are in addition to any other legal actions that may be taken.