The proposed bill, titled the "Direct Sales Consumer Protection Act," aims to prohibit pyramid promotional schemes in Florida. It amends existing law by deleting provisions related to pyramid sales schemes and introduces a new section, 849.0913, which defines pyramid promotional schemes and outlines the legal framework for enforcement. The bill explicitly prohibits individuals from establishing, promoting, operating, or participating in such schemes, even if they receive products or services in addition to compensation. It also clarifies that certain plans that involve the sale of products for personal use or resale are not considered pyramid schemes, provided they adhere to specific guidelines regarding inventory purchases and repurchase programs.

Additionally, the bill empowers the Department of Legal Affairs to issue cease and desist orders against violators and establishes penalties for those convicted of participating in or promoting pyramid schemes, including civil penalties and restitution to victims. The department can also seek injunctions to enforce compliance, and the court may appoint receivers to manage the assets of those violating the law. The provisions and penalties outlined in this bill are supplementary to existing civil, administrative, or criminal actions. The act is set to take effect on July 1, 2026.

Statutes affected:
H 265 Filed: 849.091