,i  #aad? ,,congress  #b;d ,session  ,h4
 ,r4 #ebcj  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,may #ac1 #bjaf ,mrs4 
,blackburn 7= h]self & ,mr4 ,veasey7    
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,en]gy & ,comm]ce  ,a  
,,bill  ,to prohibit pyramid promotional
 s*emes1 & = o!r purposes4  #a4 ,%ort   
title ,?is ,act may be cit$ z !         
8,anti-,pyramid ,promotional ,s*eme ,act
 ( #bjaf04  #b4 ,prohibition on pyramid 
promotional s*emes  7a7 ,9 g5]al ,x %all
 be unlawful = any p]son to e/abli%1    
op]ate1 promote or cause to be promot$ a
 pyramid promotional s*eme4  7b7        
,en=cem5t by ! ,f$]al ,trade ,commission
 ,a violation ( subsection 7a7 %all be  
treat$ z an unfair or deceptive act or  
practice 9 or affect+ comm]ce "u section
 #e ( ! ,f$]al ,trade ,commission ,act  
7#ae ,u4,s4,c4 #de74 ,! ,f$]al ,trade   
,commission %all en=ce su* subsection 9 
! same mann]1 by ! same means1 & ) !    
same jurisdiction1 p[]s1 & duties z ?\gh
 all applicable t]ms & provisions ( !   

,f$]al ,trade ,commission ,act 7#ae     
,u4,s4,c4 #da et seq47 7 incorporat$    
into & made a "p ( ?is ,act4  #c4       
,def9itions ,z us$ 9 ?is ,act3 7#a7     
,appropriate inv5tory repur*ase agreem5t
 ,! t]m appropriate inv5tory pur*ase    
agreem5t means a program by :i* a plan  
or op]ation repur*ases1 ^u reque/ at !  
t]m9ation ( a p>ticipant's bus9ess      
relation%ip ) ! plan or op]ation & bas$ 
^u comm]cially reasonable t]ms1 curr5t &
 m>ketable inv5tory pur*as$ & ma9ta9$ by
 ! p>ticipant = resale1 use1 or         
consumption1 & su* plan or op]ation 9   
its recruit+ lit]ature1 sales manual1 & 
contracts ) p>ticipants1 includ+ ! mann]
 9 :i* ! repur*ase is ex]cis$1 &        
disclosure ( any inv5tory t is n        
eligible = repur*ase "u ! program4  7#b7
 ,comm]cially reasonable t]ms ,! t]m    
comm]cially reasonable t]ms means !     
repur*ase ( curr5t & m>ketable inv5tory 
)9 #ab mon?s f ! date ( pur*ase at n    
less ?an #ij p]c5t ( ! orig9al net co/  
to ! p>ticipant1 less appropriate       

set-(fs & legal claims1 if any4  7#c7   
,comp5sation ,! t]m comp5sation means ! 
paym5t ( any money1 ?+ ( value1 f9ancial
 b5efits1 or position )9 ! plan or      
op]ation2  7#d7 ,consid]ation ,! t]m    
consid]ation-- 7,a7 means ! paym5t (    
money or ano!r ?+ ( value or ! pur*ase (
 a product1 good1 s]vice1 intangible    
prop]ty2 &  7,b7 does n include-- 7i7 ! 
pur*ase ( a product furni%$ at co/ to be
 us$ 9 mak+ a sale & n = resale2 or     
7ii7 any "t & ef=t sp5t 9 pursuit (     
sales or recruit+ activities4  7#e7     
,curr5t & m>ketable ,! t]m curr5t &     
m>ketable1 ) respect to inv5tory--  7,a7
 means inv5tory t-- 7i7 9 ! case (      
consumable or durable goods1 is unop5$1 
unus$1 & )9 its comm]cially reasonable  
use or %elf-life p]iod2 &  7ii7 9 ! case
 s]vices & intangible prop]ty1 includ+  
,int]net sites1 repres5ts ! unexpir$    
portion ( any contract or agreem5t2 &   
7,b7 does n include inv5tory t has be5  
cle>ly describ$ to ! p>ticipant prior to
 pur*ase z disc\nt$1 seasonal1 special  

promotion item1 or n subject to ! plan  
or op]ation's inv5tory repur*ase        
program4  7#f7 ,inv5tory ,! t]m inv5tory
 means bo? goods & s]vices1 includ+     
company produc$ promotional mat]ial1    
sales aids1 & sales kits t ! plan or    
op]ation requires p>ticipants to        
pur*ase4  7#g7 ,inv5tory load+ ,! t]m   
inv5tory load+ means t ! plan or        
op]ation requires or enc\rages its      
p>ticipants to pur*ase inv5tory 9 an    
am\nt t unreasonably exce$s t :i* !     
p>ticipant c expect to resell to        
ultimate us]s1 or to use or consume1 9 a
 reasonable p]iod ( "t4  7#h7           
,p>ticipant ,! t]m p>ticipant means a   
p]son :o jo9s ! plan or op]ation4  7#i7 
,pyramid promotional s*eme ,! t]m       
pyramid promotional s*eme means a plan  
or op]ation by :i* a p]son gives        
consid]ation to a p>ticipant = ! "r to  
receive comp5sation t is d]iv$ prim>ily 
f a p>ticipant's introduction ( ano!r   
p]son into ! plan or op]ation r ?an f ! 
sale ( products to ultimate us]s4  7#aj7

 ,ultimate us] ,! t]m ultimate us] means
 a non-p>ticipant 9 ! plan or op]ation1 
or a p>ticipant :o pur*ases reasonable  
am\nts ( products1 goods1 s]vices1 or   
intangible prop]ty = p]sonal use & ^:   
pur*ase is n made solely = purposes (   
qualify+ = increas$ comp5sation4  #d4   
,limitations ,no?+ 9 ?is ,act %all be   
con/ru$ to-- 7#a7 limit ! au?ority ( any
 ,f$]al (ficial f proce$+ aga9/ pyramid 
promotional s*emes = o!r violations (   
,f$]al law1 includ+ ! ,f$]al ,trade     
,commission ,act2  7#b7 all[ = a def5se 
to an en=cem5t action "u section #b (   
?is ,act t ! alleg$ pyramid promotional 
s*eme involv$ bo? a fran*ise to sell a  
product & ! au?ority to sell additional 
fran*ises if ! emphasis ( ! alleg$      
pyramid promotional s*eme is on ! sale (
 additional fran*ises2 or  7#c7 all[ = a
 def5se to an en=cem5t action "u section
 #b ( ?is ,act t ! alleg$ pyramid       
promotional s*eme includ$ repur*ase     
agreem5t inv5tory load+ programs if !   
emphasis ( ! alleg$ pyramid promotional 

s*eme is on ! sale ( additional         
fran*ises4