summary
Introduced
12/03/2025
12/03/2025
In Committee
12/16/2025
12/16/2025
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
An act relating to the prohibition of pyramid promotional schemes; providing a short title; amending s. 849.091, F.S.; deleting provisions 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; requiring the Department of Legal Affairs to issue and serve a complaint and cease and desist order in certain instances; establishing procedures for cease and desist orders; providing penalties; providing for restitution; authorizing the department to apply for an injunction; providing requirements for an injunction; authorizing the court to appoint a receiver; providing for the powers and duties of such receivership; authorizing the court to issue an order to stay certain actions and requiring such actions be assigned to the judge who 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 establishes the "Direct Sales Consumer Protection Act" to prohibit pyramid promotional schemes in Florida. The bill defines a pyramid promotional scheme as a plan where participants pay to receive compensation primarily based on recruiting other people rather than selling actual products or services. The legislation creates strict regulations around multi-level marketing operations, requiring that such plans must have genuine product sales, limit inventory purchases, and provide a repurchase program for unsold inventory. The Department of Legal Affairs is empowered to investigate and take action against such schemes, including issuing cease and desist orders and seeking injunctions. Violations can result in significant penalties, including civil fines up to $10,000 per violation, criminal charges ranging from misdemeanors to third-degree felonies, and mandatory restitution. The law aims to protect consumers by preventing exploitative marketing practices that prioritize recruitment over legitimate product sales, with provisions designed to distinguish between illegal pyramid schemes and legitimate multi-level marketing businesses. The act will take effect on July 1, 2026, giving businesses time to adjust their practices to comply with the new regulations.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Now in Appropriations Committee on Criminal and Civil Justice (on 02/12/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.flsenate.gov/Session/Bill/2026/712 |
| Analysis - Criminal Justice (Post-Meeting) | https://www.flsenate.gov/Session/Bill/2026/712/Analyses/2026s00712.cj.PDF |
| Analysis - Criminal Justice (Pre-Meeting) | https://www.flsenate.gov/Session/Bill/2026/712/Analyses/2026s00712.pre.cj.PDF |
| BillText | https://www.flsenate.gov/Session/Bill/2026/712/BillText/Filed/HTML |
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