The bill amends existing Florida law regarding pyramid promotional schemes by deleting previous provisions related to pyramid sales schemes and creating a new section, 849.0913, which explicitly prohibits the establishment, promotion, operation, or participation in pyramid promotional schemes. The bill provides clear definitions for terms such as "compensation," "consideration," and "pyramid promotional scheme," and outlines the conditions under which certain plans may operate without being classified as pyramid schemes. It also establishes the Department of Legal Affairs as the enforcing body, requiring it to issue cease and desist orders in cases of violations.

Additionally, the bill sets forth penalties for violations, including felony charges for those who establish or promote such schemes and misdemeanor charges for participants. It allows for restitution to victims and authorizes the department to seek injunctions against violators. The bill also includes provisions for appointing receivers to manage the assets of those violating the law and emphasizes that the penalties outlined are supplementary to other legal actions available. The act is set to take effect on July 1, 2025.

Statutes affected:
H 249 Filed: 849.091