Circumstances Under Which This Article May Not Be Construed to Prohibit a Plan or Operation as a Pyramid Promotional Scheme

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Sec. 1. This article may not 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 compensation based upon purchases of goods, services, or intangible property by participants for personal use, consumption, or resale if both of the following conditions are satisfied:

(1) The plan or operation does not promote or induce inventory loading.

(2) The plan or operation implements an appropriate inventory repurchase program.

As added by P.L.105-2017, SEC.3.


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