The bill amends existing Florida law regarding pyramid promotional schemes by deleting the 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 new section defines key terms such as "compensation," "consideration," and "participant," and outlines the characteristics of a pyramid promotional scheme, emphasizing that compensation must be based on recruiting rather than the sale of products or services. The bill also establishes specific enforcement mechanisms, including the authority for the Department of Legal Affairs to issue cease and desist orders, prosecute violations, and seek injunctions against offenders.

Additionally, the bill sets forth civil and criminal penalties for violations, including fines and restitution requirements for convicted individuals. It mandates that the department must hold hearings for cease and desist orders and allows for judicial review of such orders, which must take precedence over other civil cases. The bill also provides for the appointment of receivers to manage the assets of those violating the law and clarifies that the penalties outlined are supplementary to any other legal actions available. The effective date for this legislation is set for July 1, 2025.

Statutes affected:
S 660 Filed: 849.091