Title 37, TRADE REGULATION

For the purposes of §§ 37-33-1 to 37-33-11 , inclusive, the term, pyramid promotional scheme, means any plan or operation by which a person gives consideration for the opportunity to receive compensation that is derived primarily from the introduction of other persons into the pl…

For the purposes of §§ 37-33-1 to 37-33-11 , inclusive, the term, compensation, means a payment of any money, thing of value, or financial benefit conferred in return for inducing another person to participate in a pyramid promotional scheme. Source: SL 2003, ch 213 , § 4.

For the purposes of §§ 37-33-1 to 37-33-11 , inclusive, the term, consideration, means the payment of cash or the purchase of goods, services, or intangible property. The term does not include the purchase of goods or services furnished at cost to be used in making sales and not …

For the purposes of §§ 37-33-1 to 37-33-11 , inclusive, the term, inventory loading, means that the plan or operation requires or encourages its independent salespersons to purchase inventory in an amount, which exceeds that which the salesperson can expect to resell for ultimate…

No person may establish, promote, operate, or participate in any pyramid promotional scheme. A limitation as to the number of persons who may participate or the presence of additional conditions affecting eligibility for the opportunity to receive compensation under the plan does…

Nothing in §§ 37-33-1 to 37-33-11 , inclusive, may be construed to prohibit a plan or operation, or to define a plan or operation as a pyramid promotional scheme, based on the fact that participants in the plan or operation give consideration in return for the right to receive co…

The provisions of §§ 37-33-1 to 37-33-11 , inclusive, do not preclude, preempt, or prohibit the attorney general from proceeding against any plan or scheme or any person involved with such plan or scheme under any other provision of law. Source: SL 2003, ch 213 , § 9.