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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.

USA115th CongressS-3| Senate 
| Updated: 12/3/2018
Orrin G. Hatch

Orrin G. Hatch

Republican Senator

Utah

Commerce, Science, and Transportation Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
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.
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Timeline
Jul 28, 2017

Latest Companion Bill Action

HR 115-3409
Referred to the Subcommittee on Digital Commerce and Consumer Protection.
Dec 3, 2018
Introduced in Senate
Dec 3, 2018
Read twice and referred to the Committee on Commerce, Science, and Transportation.
  • July 28, 2017

    Latest Companion Bill Action

    HR 115-3409
    Referred to the Subcommittee on Digital Commerce and Consumer Protection.


  • December 3, 2018
    Introduced in Senate


  • December 3, 2018
    Read twice and referred to the Committee on Commerce, Science, and Transportation.

Commerce

Related Bills

  • HR 115-3409: To amend the Federal Trade Commission Act to prohibit pyramid promotional schemes and to ensure that compensation is not based upon recruitment of participants into a plan or operation, but on sales to individuals who use and consume the products or services sold, and for other purposes.
Consumer affairsFinancial services and investmentsFraud offenses and financial crimesMarketing and advertising

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.

USA115th CongressS-3| Senate 
| Updated: 12/3/2018
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.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline
Jul 28, 2017

Latest Companion Bill Action

HR 115-3409
Referred to the Subcommittee on Digital Commerce and Consumer Protection.
Dec 3, 2018
Introduced in Senate
Dec 3, 2018
Read twice and referred to the Committee on Commerce, Science, and Transportation.
  • July 28, 2017

    Latest Companion Bill Action

    HR 115-3409
    Referred to the Subcommittee on Digital Commerce and Consumer Protection.


  • December 3, 2018
    Introduced in Senate


  • December 3, 2018
    Read twice and referred to the Committee on Commerce, Science, and Transportation.
Orrin G. Hatch

Orrin G. Hatch

Republican Senator

Utah

Commerce, Science, and Transportation Committee

Commerce

Related Bills

  • HR 115-3409: To amend the Federal Trade Commission Act to prohibit pyramid promotional schemes and to ensure that compensation is not based upon recruitment of participants into a plan or operation, but on sales to individuals who use and consume the products or services sold, and for other purposes.
  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
Consumer affairsFinancial services and investmentsFraud offenses and financial crimesMarketing and advertising