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 their prohibition. The bill specifies that individuals are not allowed to establish, promote, operate, or participate in such schemes, even if they receive products or services in addition to compensation. It also clarifies that certain plans that involve the purchase of products for personal use or resale are not considered pyramid schemes, provided they meet specific criteria regarding inventory purchases and repurchase programs.

The bill empowers the Department of Legal Affairs to issue cease and desist orders against violators and establishes penalties for those who engage in pyramid promotional schemes. Violators may face civil penalties, including fines of up to $10,000 for each violation, and criminal charges, with those convicted of operating a pyramid scheme facing felony charges. Additionally, the bill allows the department to seek injunctions and appoint receivers to manage the assets of those violating the law. The provisions and penalties outlined in this bill are supplementary to any other civil, administrative, or criminal actions available under existing law. The act is set to take effect on July 1, 2026.

Statutes affected:
S 712 Filed: 849.091