The bill amends existing Florida law by deleting provisions related to pyramid sales schemes from section 849.091 and creating a new section, 849.0913, which explicitly prohibits pyramid promotional schemes. The new section defines key terms such as "pyramid promotional scheme," "participant," and "compensation," and establishes that individuals are prohibited from establishing, promoting, operating, or participating in such schemes. The bill outlines specific conditions under which certain plans may operate without being classified as pyramid schemes, particularly emphasizing the importance of product sales for personal use rather than recruitment.

Additionally, the bill grants the Department of Legal Affairs the authority to issue cease and desist orders against violators, with established procedures for enforcement, including the ability to seek injunctions and appoint receivers to manage the assets of those violating the law. Penalties for violations include civil penalties of up to $10,000 for each infraction, with criminal penalties ranging from misdemeanors to felonies depending on the nature of the offense. The provisions and penalties outlined in this new section are supplementary to existing civil, administrative, or criminal actions. The act is set to take effect on July 1, 2025.

Statutes affected:
H 249 Filed: 849.091