This 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 bill 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. It also establishes specific conditions under which certain plans may operate without being classified as pyramid schemes, particularly regarding inventory purchases and repurchase programs.

Additionally, the bill empowers the Department of Legal Affairs to issue cease and desist orders against individuals suspected of violating these provisions, with established procedures for judicial review and penalties for non-compliance. Violators may face civil penalties, criminal charges, and restitution requirements. The bill also allows for the appointment of receivers to manage the assets of those violating the law and clarifies that the penalties outlined are supplementary to other legal actions. The act is set to take effect on July 1, 2025.

Statutes affected:
S 660 Filed: 849.091