37-5B-25. Fraud--Class 6 felony.
No person may, directly or indirectly, in connection with the offer or sale of a franchise willfully:
(1)Make an untrue statement of material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading;
(2)Engage in an act, practice, or course of business which operates or would operate as a fraud or deceit on a person;
(3)Represent to a prospective franchisee that the notice filing of a franchise application constitutes a finding by the director that a disclosure document filed under this chapter is true, complete, and not misleading or that the director has passed upon the merits of the disclosure document and the franchise;
(4)Violate an order of the director after the person receives notice that the order was issued;
(5)Misrepresent that a franchise is notice filed or exempted from notice filing under this chapter; and
(6)Omit to state a material fact or make or cause to be made an untrue statement of a material fact in any application, notice, or report filed with the director under this chapter.
A violation of this section is a Class 6 felony.
Source: SL 2008, ch 203, §25.