37-33-1.”Promote” defined. For the purposes of §§37-33-1 to 37-33-11, inclusive, the term, promote, means contrive, prepare, establish, plan, operate, advertise, or otherwise induce or attempt to induce another person to participate in a pyramid promotional scheme. Source: SL 2003, ch 213, §1.
37-33-10. Civil proceedings by attorney general–Entry of orders–Injunctions–Hearings–Penalties–Payment of costs. If it appears to the attorney general that any person has engaged or is about to engage in any act or practice constituting a violation of any provision of §§37-33-1 to 37-33-11, inclusive, or any order under §§37-33-1 to 37-33-11, inclusive, the attorney general may […]
37-33-11. Burden of proof. The burden of showing compliance with the provisions of §§37-33-1 to 37-33-11, inclusive, lies with the plan, scheme, or person involved with such plan or scheme. Source: SL 2003, ch 213, §11.
37-33-2.”Appropriate inventory repurchase program” defined–“Inventory” defined–“Commercially reasonable” defined–“Current and marketable” defined. For the purposes of §§37-33-1 to 37-33-11, inclusive, the term, appropriate inventory repurchase program, means a program by which a plan or operation repurchases, upon request and upon commercially reasonable terms, when the salesperson’s business relationship with the company ends, current and marketable inventory […]
37-33-3.”Pyramid promotional scheme” defined. 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 plan or operation rather than from the sale and […]
37-33-4.”Compensation” defined. 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.
37-33-5.”Consideration” defined. 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 resale, or time and effort […]
37-33-6.”Inventory loading” defined. 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 consumption or to consume in a reasonable time period, or […]
37-33-7. Pyramid promotional schemes prohibited–Operation of scheme a felony–Participation in scheme a misdemeanor. 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 […]
37-33-8. Certain plans not defined as pyramid promotional schemes. 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 […]
37-33-9. Attorney general may proceed against pyramid promotional schemes. 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.
