A bill to amend the Federal Trade Commission Act to prohibit pyramid promotional schemes to ensure that compensation is not based upon recruitment of participants into a plan or operation, but instead based primarily on sales to individuals who use, resell, or consume the products or services sold, protect participants, prohibit inventory loading, and for other purposes.
Anti-Pyramid Scheme Act of 2018
This bill amends the Federal Trade Commission Act to make it unlawful for any person to establish, operate, or promote a pyramid promotional scheme. "Pyramid promotional scheme" means any plan or operation in which individuals pay consideration for the right to receive compensation that is based upon recruiting other individuals into the plan or operation rather than primarily related to the sale of products or services to ultimate users.
Furthermore, any person who establishes, operates, or promotes any plan or operation that sells or solicits the sale of consumer products or services in the home or otherwise outside of a permanent retail establishment, and that sells products or services to independent salespeople, shall have a bona fide inventory repurchase agreement.
A violation of the bill shall be treated under the Act as an unfair or deceptive act or practice in, or affecting, commerce.
Referred to the Subcommittee on Digital Commerce and Consumer Protection.
Introduced in Senate
Read twice and referred to the Committee on Commerce, Science, and Transportation.
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