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CS/HB 265 2026
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to the prohibition of pyramid 2
promotional schemes; amending s. 849.091, F.S.; 3
deleting provisions relating to pyramid sales schemes; 4
creating s. 849.0913, F.S.; providing definitions; 5
prohibiting a person from establishing, promoting, 6
operating, or participating in a pyramid promotional 7
scheme; providing penalties; providing for 8
restitution; providing that specified provisions and 9
penalties are in addition to civil, administrative, or 10
criminal actions provided by law; providing an 11
effective date. 12
13
Be It Enacted by the Legislature of the State of Florida: 14
15
Section 1. Section 849.091, Florida Statutes, is amended 16
to read: 17
849.091 Chain letters, pyramid clubs, etc., declared a 18
lottery; prohibited; penalties.— 19
(1) The organization of any chain letter club, pyramid 20
club, or other group organized or brought together under any 21
plan or device whereby fees or dues or anything of material 22
value to be paid or given by members thereof are to be paid or 23
given to any other member thereof, which plan or device includes 24
any provision for the increase in such membership through a 25
CS/HB 265 2026
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
chain process of new members securing other new members and 26
thereby advancing themselves in the group to a position where 27
such members in turn receive fees, dues, or things of material 28
value from other members, is hereby declared to be a lottery, 29
and whoever shall participate in any such lottery by becoming a 30
member of, or affiliating with, any such group or organization 31
or who shall solicit any person for membership or affiliation in 32
any such group or organization commits a misdemeanor of the 33
first degree, punishable as provided in s. 775.082 or s. 34
775.083. 35
(2) A "pyramid sales scheme," which is any sales or 36
marketing plan or operation whereby a person pays a 37
consideration of any kind, or makes an investment of any kind, 38
in excess of $100 and acquires the opportunity to receive a 39
benefit or thing of value which is not primarily contingent on 40
the volume or quantity of goods, services, or other property 41
sold in bona fide sales to consumers, and which is related to 42
the inducement of additional persons, by himself or herself or 43
others, regardless of number, to participate in the same sales 44
or marketing plan or operation, is hereby declared to be a 45
lottery, and whoever shall participate in any such lottery by 46
becoming a member of or affiliating with, any such group or 47
organization or who shall solicit any person for membership or 48
affiliation in any such group or organization commits a 49
misdemeanor of the first degree, punishable as provided in s. 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
775.082 or s. 775.083. For purposes of this subsection, the term 51
"consideration" and the term "investment" do not include the 52
purchase of goods or services furnished at cost for use in 53
making sales, but not for resale, or time and effort spent in 54
the pursuit of sales or recruiting activities. 55
Section 2. Section 849.0913, Florida Statutes, is created 56
to read: 57
849.0913 Pyramid promotional schemes prohibited; 58
definitions; exceptions; penalties.- 59
(1) As used in this section, the term: 60
(a) "Compensation" means a payment of any money, thing of 61
value, or financial benefit conferred in return for inducing a 62
person to participate in a pyramid promotional scheme. 63
(b) "Consideration" means the payment of money or the 64
purchase of a product, good, service, or intangible property. 65
The term does not include the purchase of a product or service 66
furnished at cost to be used in making a sale and not for resale 67
or any time and effort spent in pursuit of sales or recruiting 68
activities. 69
(c) "Participate" means to contribute money into a pyramid 70
promotional scheme without promoting, organizing, or operating 71
such scheme. 72
(d) "Pyramid promotional scheme" means a plan or operation 73
in which a person pays or gives consideration for the right to 74
receive compensation that is primarily based on recruiting other 75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
persons into the plan or operation rather than from the sale and 76
consumption of products, goods, services, or intangible property 77
by a participant or other person introduced into the plan or 78
operation. The term includes a plan or operation in which the 79
number of persons who may participate is limited either 80
expressly or by the application of conditions affecting the 81
eligibility of a person to receive compensation under the plan 82
or operation, or a plan or operation in which a person, upon 83
giving consideration, obtains any products, goods, services, or 84
intangible property in addition to the right to receive 85
compensation. 86
(2) A person may not establish, promote, operate, or 87
participate in a pyramid promotional scheme, even if such 88
person, upon giving consideration, obtains products, goods, 89
services, or intangible property in addition to the right to 90
receive compensation. 91
(3)(a) This section does not prohibit a plan or operation 92
in which participants give consideration in return for the right 93
to receive compensation based on the purchase of products, 94
goods, services, or intangible property by customers or 95
participants for personal use, consumption, or resale so long as 96
the plan or operation: 97
1. Does not promote or induce a practice in which the plan 98
or operation requires its independent salesperson to purchase 99
inventory in an amount exceeding that which the salesperson can 100
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
expect to resell for ultimate consumption or consumption in a 101
reasonable time period, or both; and 102
2. Implements a program in which the plan or operation 103
repurchases from a salesperson, upon request and pursuant to 104
commercially reasonable terms, current and marketable inventory 105
in the possession of the salesperson which was purchased during 106
his or her business relationship for resale. Such plan or 107
operation must clearly describe the program in its business 108
recruiting literature, sales manual, or contract with 109
independent salespersons, including the disclosure of inventory 110
that is not eligible for repurchase under the program. 111
(b) For purposes of this subsection, the term: 112
1. "Inventory" includes products, goods, and services, 113
including company-produced promotional materials, sales aids, 114
and sales kits that the plan or operation requires independent 115
salespersons to purchase. 116
2. "Commercially reasonable terms" means the repurchase of 117
current and marketable inventory within 12 months after the date 118
of purchase at not less than 90 percent of the original net 119
cost, less appropriate setoffs and legal claims, if any. 120
3. "Current and marketable inventory" does not include any 121
inventory that: 122
a. Is no longer within its commercially reasonable use or 123
shelf-life period; 124
b. Was clearly described to the salesperson before 125
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purchase as being seasonal, discontinued, or special promotional 126
goods, products, or services that are not subject to the 127
inventory repurchase program; or 128
c. Has been used or opened. 129
(4)(a) A person who establishes, promotes, or operates a 130
pyramid promotional scheme commits a felony of the third degree, 131
punishable as provided in s. 775.082, s. 775.083, or s. 775.084. 132
(b) A person who participates in a pyramid promotional 133
scheme commits a misdemeanor of the first degree, punishable as 134
provided in s. 775.082 or s. 775.083. 135
(c) The court shall order a person convicted of violating 136
this section to pay restitution pursuant to s. 775.089. In 137
determining the value of the property loss, the court shall 138
include expenses incurred in the investigation or prosecution of 139
the offense as well as the disgorgement of any profits realized 140
by the person. 141
(5) The provisions and penalties set forth in this section 142
are in addition to any other civil, administrative, or criminal 143
action provided by law. 144
Section 3. This act shall take effect July 1, 2026. 145