{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/18.2-239.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/18.2-239.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/18.2-239.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/18.2-239.html"}],"law_id":66246,"edition_id":1,"section_id":66246,"structure_id":14926,"section_number":"18.2-239","catch_line":"Pyramid promotional schemes; misdemeanor; definitions; contracts void","history":"Code 1950, \u00a7\u00a7 59.1-67.1, 59.1-67.2; 1970, c. 450; 1975, cc. 14, 15; 2008, cc. 791, 842.","full_text":"Every person who contrives, prepares, sets up, operates, advertises or promotes any pyramid promotional scheme shall be guilty of a Class 1 misdemeanor. For the purposes of this section:\n\n1\n\n&#8220;Compensation&#8221; means the transfer of money or anything of value.\n\t\t\t&#8220;Compensation&#8221; does not mean payment based on sales of goods or services to persons who are not participants in the scheme and who are not purchasing in order to participate in the scheme;2\n\n&#8220;Consideration&#8221; means the payment of cash or the purchase of goods, services, or intangible property;3\n\n&#8220;Promotes&#8221; means inducing one or more other persons to become a participant; and4\n\n&#8220;Pyramid promotional scheme&#8221; means any plan or operation by which a person gives consideration for the opportunity to receive compensation a majority of which is derived from the introduction of other persons into the plan or operation rather than from the sale or consumption of goods, services, or intangible property by a participant or other persons introduced into the plan or operation.\n\t\t\tAll contracts and agreements, now existing or hereafter formed, whereof the whole or any part of the consideration is given for the right to participate in pyramid promotional scheme programs, are against public policy, void and unenforceable.\n\t\t\tAny violation of the provisions of this section shall constitute a prohibited practice under the provisions of &#xA7; 59.1-200 and shall be subject to any and all of the enforcement provisions of the Virginia Consumer Protection Act (&#xA7; 59.1-196 et seq.).","order_by":null,"text":{"0":{"id":240615,"text":"Every person who contrives, prepares, sets up, operates, advertises or promotes any pyramid promotional scheme shall be guilty of a Class 1 misdemeanor. For the purposes of this section:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":240616,"text":"&#8220;Compensation&#8221; means the transfer of money or anything of value.\n\t\t\t&#8220;Compensation&#8221; does not mean payment based on sales of goods or services to persons who are not participants in the scheme and who are not purchasing in order to participate in the scheme;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":240617,"text":"&#8220;Consideration&#8221; means the payment of cash or the purchase of goods, services, or intangible property;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":240618,"text":"&#8220;Promotes&#8221; means inducing one or more other persons to become a participant; and","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":240619,"text":"&#8220;Pyramid promotional scheme&#8221; means any plan or operation by which a person gives consideration for the opportunity to receive compensation a majority of which is derived from the introduction of other persons into the plan or operation rather than from the sale or consumption of goods, services, or intangible property by a participant or other persons introduced into the plan or operation.\n\t\t\tAll contracts and agreements, now existing or hereafter formed, whereof the whole or any part of the consideration is given for the right to participate in pyramid promotional scheme programs, are against public policy, void and unenforceable.\n\t\t\tAny violation of the provisions of this section shall constitute a prohibited practice under the provisions of &#xA7; 59.1-200 and shall be subject to any and all of the enforcement provisions of the Virginia Consumer Protection Act (&#xA7; 59.1-196 et seq.).","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3"}},"ancestry":[{"id":14926,"edition_id":1,"name":"Misrepresentations and Other Offenses Connected With Sales","identifier":"8","label":"article","depth":3,"order_by":1,"parent_id":13358,"metadata":{},"date_created":"2026-06-26 03:50:50","date_modified":"2026-06-26 03:50:50","permalink":{"id":166333,"object_type":"structure","relational_id":14926,"identifier":"8","token":"18.2\/6\/8","url":"\/18.2\/6\/8\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13358,"edition_id":1,"name":"Crimes Involving Fraud","identifier":"6","label":"chapter","depth":2,"order_by":1,"parent_id":12972,"metadata":{},"date_created":"2026-06-26 03:44:42","date_modified":"2026-06-26 03:44:42","permalink":{"id":165933,"object_type":"structure","relational_id":13358,"identifier":"6","token":"18.2\/6","url":"\/18.2\/6\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12972,"edition_id":1,"name":"Crimes and Offenses Generally","identifier":"18.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:05","date_modified":"2026-06-26 03:44:05","permalink":{"id":164139,"object_type":"structure","relational_id":12972,"identifier":"18.2","token":"18.2","url":"\/18.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":56967,"structure_id":14926,"section_number":"18.2-214","catch_line":"Changing or removing, etc., trademarks, identification marks, etc","url":"\/18.2-214\/","token":"18.2\/6\/8\/18.2-214","metadata":false},{"id":82948,"structure_id":14926,"section_number":"18.2-214.1","catch_line":"Penalties for failure to report removal or alteration of identification or serial number on business machines","url":"\/18.2-214.1\/","token":"18.2\/6\/8\/18.2-214.1","metadata":false},{"id":68648,"structure_id":14926,"section_number":"18.2-215","catch_line":"Removal or alteration of identification numbers on household electrical appliances; possession of such appliances","url":"\/18.2-215\/","token":"18.2\/6\/8\/18.2-215","metadata":false},{"id":67373,"structure_id":14926,"section_number":"18.2-216","catch_line":"Untrue, deceptive or misleading advertising, inducements, writings or documents","url":"\/18.2-216\/","token":"18.2\/6\/8\/18.2-216","metadata":false},{"id":60772,"structure_id":14926,"section_number":"18.2-216.1","catch_line":"Unauthorized use of name or picture of any person; punishment","url":"\/18.2-216.1\/","token":"18.2\/6\/8\/18.2-216.1","metadata":false},{"id":74276,"structure_id":14926,"section_number":"18.2-217","catch_line":"Advertising merchandise, etc., for sale with intent not to sell at price or terms advertised; prima facie evidence of violation","url":"\/18.2-217\/","token":"18.2\/6\/8\/18.2-217","metadata":false},{"id":75186,"structure_id":14926,"section_number":"18.2-218","catch_line":"Failure to indicate goods, etc., are \"seconds,\" \"irregulars,\" \"secondhand,\" etc","url":"\/18.2-218\/","token":"18.2\/6\/8\/18.2-218","metadata":false},{"id":64605,"structure_id":14926,"section_number":"18.2-219","catch_line":"Repealed","url":"\/18.2-219\/","token":"18.2\/6\/8\/18.2-219","metadata":false},{"id":64882,"structure_id":14926,"section_number":"18.2-220","catch_line":"Use of word \"wholesale\" or \"wholesaler.\"","url":"\/18.2-220\/","token":"18.2\/6\/8\/18.2-220","metadata":false},{"id":66715,"structure_id":14926,"section_number":"18.2-221","catch_line":"Advertising new or used automobiles or trucks","url":"\/18.2-221\/","token":"18.2\/6\/8\/18.2-221","metadata":false},{"id":75297,"structure_id":14926,"section_number":"18.2-222","catch_line":"Misrepresentation as to source of merchandise; penalty","url":"\/18.2-222\/","token":"18.2\/6\/8\/18.2-222","metadata":false},{"id":86176,"structure_id":14926,"section_number":"18.2-223","catch_line":"\"Going out of business\" sales; permit required","url":"\/18.2-223\/","token":"18.2\/6\/8\/18.2-223","metadata":false},{"id":74974,"structure_id":14926,"section_number":"18.2-224","catch_line":"\"Going out of business\" sales; counties, cities and towns to issue permits; inspections; application for permit; inventory required; commingling of other goods prohibited; duration; additional permits; inclusion of permit number and dates in advertisements; fee","url":"\/18.2-224\/","token":"18.2\/6\/8\/18.2-224","metadata":false},{"id":58121,"structure_id":14926,"section_number":"18.2-225","catch_line":"Misrepresentations as to agricultural products","url":"\/18.2-225\/","token":"18.2\/6\/8\/18.2-225","metadata":false},{"id":64895,"structure_id":14926,"section_number":"18.2-226","catch_line":"Fraud and misrepresentation in sale of liquid fuels, lubricating oils and similar products","url":"\/18.2-226\/","token":"18.2\/6\/8\/18.2-226","metadata":false},{"id":71529,"structure_id":14926,"section_number":"18.2-227","catch_line":"Same; sale from pump indicating other brand","url":"\/18.2-227\/","token":"18.2\/6\/8\/18.2-227","metadata":false},{"id":77793,"structure_id":14926,"section_number":"18.2-228","catch_line":"Same; imitating indicia of other brands","url":"\/18.2-228\/","token":"18.2\/6\/8\/18.2-228","metadata":false},{"id":76918,"structure_id":14926,"section_number":"18.2-229","catch_line":"Same; false trade name or mixing brands","url":"\/18.2-229\/","token":"18.2\/6\/8\/18.2-229","metadata":false},{"id":77965,"structure_id":14926,"section_number":"18.2-230","catch_line":"Same; assisting in violation of \u00a7\u00a7 18.2-226 through 18.2-229","url":"\/18.2-230\/","token":"18.2\/6\/8\/18.2-230","metadata":false},{"id":84281,"structure_id":14926,"section_number":"18.2-231","catch_line":"Same; label required","url":"\/18.2-231\/","token":"18.2\/6\/8\/18.2-231","metadata":false},{"id":71104,"structure_id":14926,"section_number":"18.2-232","catch_line":"Same; punishment for violation of \u00a7\u00a7 18.2-226 through 18.2-231","url":"\/18.2-232\/","token":"18.2\/6\/8\/18.2-232","metadata":false},{"id":82796,"structure_id":14926,"section_number":"18.2-233","catch_line":"Sale of goods marked \"sterling\" and \"sterling silver.\"","url":"\/18.2-233\/","token":"18.2\/6\/8\/18.2-233","metadata":false},{"id":87312,"structure_id":14926,"section_number":"18.2-234","catch_line":"Sale of goods marked \"coin\" and \"coin silver.\"","url":"\/18.2-234\/","token":"18.2\/6\/8\/18.2-234","metadata":false},{"id":58096,"structure_id":14926,"section_number":"18.2-235","catch_line":"Regulating sale of merchandise made of gold","url":"\/18.2-235\/","token":"18.2\/6\/8\/18.2-235","metadata":false},{"id":71037,"structure_id":14926,"section_number":"18.2-236","catch_line":"Repealed","url":"\/18.2-236\/","token":"18.2\/6\/8\/18.2-236","metadata":false},{"id":73398,"structure_id":14926,"section_number":"18.2-237","catch_line":"Buying, etc., certain secondhand materials; intent; possession","url":"\/18.2-237\/","token":"18.2\/6\/8\/18.2-237","metadata":false},{"id":57637,"structure_id":14926,"section_number":"18.2-238","catch_line":"Buying, etc., pig iron, etc., with intent to defraud; possession; evidence of intent","url":"\/18.2-238\/","token":"18.2\/6\/8\/18.2-238","metadata":false},{"id":66246,"structure_id":14926,"section_number":"18.2-239","catch_line":"Pyramid promotional schemes; misdemeanor; definitions; contracts void","url":"\/18.2-239\/","token":"18.2\/6\/8\/18.2-239","metadata":false},{"id":61630,"structure_id":14926,"section_number":"18.2-240","catch_line":"Same; injunction","url":"\/18.2-240\/","token":"18.2\/6\/8\/18.2-240","metadata":false},{"id":81679,"structure_id":14926,"section_number":"18.2-241","catch_line":"Acceptance of promissory notes in payment for food sold at retail","url":"\/18.2-241\/","token":"18.2\/6\/8\/18.2-241","metadata":false},{"id":71800,"structure_id":14926,"section_number":"18.2-242","catch_line":"Use of games, lotteries, etc., for promoting sale of certain products","url":"\/18.2-242\/","token":"18.2\/6\/8\/18.2-242","metadata":false},{"id":67303,"structure_id":14926,"section_number":"18.2-242.1","catch_line":"Certain referral transactions in connection with consumer sales or leases prohibited; effect of such transactions","url":"\/18.2-242.1\/","token":"18.2\/6\/8\/18.2-242.1","metadata":false},{"id":79206,"structure_id":14926,"section_number":"18.2-243","catch_line":"When issuer or distributor of advertisements not guilty of violation; inadvertent error","url":"\/18.2-243\/","token":"18.2\/6\/8\/18.2-243","metadata":false},{"id":70417,"structure_id":14926,"section_number":"18.2-244","catch_line":"Right to select clientele or customers not affected","url":"\/18.2-244\/","token":"18.2\/6\/8\/18.2-244","metadata":false},{"id":65577,"structure_id":14926,"section_number":"18.2-245","catch_line":"Enjoining violation of this article","url":"\/18.2-245\/","token":"18.2\/6\/8\/18.2-245","metadata":false},{"id":73290,"structure_id":14926,"section_number":"18.2-246","catch_line":"Penalty in general for violations","url":"\/18.2-246\/","token":"18.2\/6\/8\/18.2-246","metadata":false}],"previous_section":{"id":57637,"structure_id":14926,"section_number":"18.2-238","catch_line":"Buying, etc., pig iron, etc., with intent to defraud; possession; evidence of intent","url":"\/18.2-238\/","token":"18.2\/6\/8\/18.2-238","metadata":false},"next_section":{"id":61630,"structure_id":14926,"section_number":"18.2-240","catch_line":"Same; injunction","url":"\/18.2-240\/","token":"18.2\/6\/8\/18.2-240","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/18.2-239\/","history_text":"<p>The record of this law\u2019s original creation isn\u2019t available online. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1970, chapter 450; in 1975, chapters 14 and 15; in 2008, chapters <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?081+ful+CHAP0791\">791<\/a> and <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?081+ful+CHAP0842\">842<\/a>.<\/p>","references":[{"id":61630,"section_number":"18.2-240","catch_line":"Same; injunction","order_by":null,"url":"\/18.2-240\/"},{"id":82977,"section_number":"59.1-200","catch_line":"Prohibited practices","order_by":null,"url":"\/59.1-200\/"}],"refers_to":[{"id":56198,"section_number":"59.1-196","catch_line":"Title","order_by":null,"url":"\/59.1-196\/"},{"id":82977,"section_number":"59.1-200","catch_line":"Prohibited practices","order_by":null,"url":"\/59.1-200\/"}],"permalink":{"id":166443,"object_type":"law","relational_id":66246,"identifier":"18.2-239","token":"18.2\/6\/8\/18.2-239","url":"\/18.2-239\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/18.2-239\/","token":"18.2\/6\/8\/18.2-239","dublin_core":{"Title":"Pyramid promotional schemes; misdemeanor; definitions; contracts void","Type":"Text","Format":"text\/html","Identifier":"\u00a7 18.2-239","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section><p>Every person who contrives, prepares, sets up, operates, advertises or <span class=\"dictionary\">promotes<\/span> any <span class=\"dictionary\">pyramid promotional scheme<\/span> shall be guilty of a Class 1 <span class=\"dictionary\">misdemeanor<\/span>. For the purposes of this section:<\/p><\/section>\n\t\t\t\t\t\t<section id=\"1\"><p><span class=\"prefix-number\">1.<\/span> &#8220;<span class=\"dictionary\">Compensation<\/span>&#8221; means the transfer of money or anything of value.\n\t\t\t&#8220;<span class=\"dictionary\">Compensation<\/span>&#8221; does not mean payment based on sales of goods or services to persons who are not participants in the scheme and who are not purchasing in <span class=\"dictionary\">order<\/span> to participate in the scheme; <a id=\"paragraph-240616\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/18.2-239\/#1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"2\"><p><span class=\"prefix-number\">2.<\/span> &#8220;<span class=\"dictionary\">Consideration<\/span>&#8221; means the payment of cash or the purchase of goods, services, or intangible property; <a id=\"paragraph-240617\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/18.2-239\/#2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"3\"><p><span class=\"prefix-number\">3.<\/span> &#8220;<span class=\"dictionary\">Promotes<\/span>&#8221; means inducing one or more other persons to become a participant; and <a id=\"paragraph-240618\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/18.2-239\/#3\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"4\"><p><span class=\"prefix-number\">4.<\/span> &#8220;<span class=\"dictionary\">Pyramid promotional scheme<\/span>&#8221; means any plan or operation by which a person gives <span class=\"dictionary\">consideration<\/span> for the opportunity to receive <span class=\"dictionary\">compensation<\/span> a majority of which is derived from the introduction of other persons into the plan or operation rather than from the sale or consumption of goods, services, or intangible property by a participant or other persons introduced into the plan or operation.\n\t\t\tAll <span class=\"dictionary\">contracts<\/span> and agreements, now existing or hereafter formed, whereof the whole or any part of the <span class=\"dictionary\">consideration<\/span> is given for the right to participate in <span class=\"dictionary\">pyramid promotional scheme<\/span> programs, are against public policy, void and unenforceable.\n\t\t\tAny violation of the provisions of this section shall constitute a prohibited practice under the provisions of &#xA7; <a class=\"law\" title=\"Prohibited practices\" href=\"\/59.1-200\/\">59.1-200<\/a> and shall be subject to any and all of the enforcement provisions of the Virginia Consumer Protection Act (&#xA7; <a class=\"law\" title=\"Title\" href=\"\/59.1-196\/\">59.1-196<\/a> et seq.). <a id=\"paragraph-240619\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/18.2-239\/#4\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nPYRAMID PROMOTIONAL SCHEMES; MISDEMEANOR; DEFINITIONS; CONTRACTS VOID (\u00a7\n18.2-239)\n\nEvery person who contrives, prepares, sets up, operates, advertises or promotes\nany pyramid promotional scheme shall be guilty of a Class 1 misdemeanor. For the\npurposes of this section:\n\n1. &#8220;Compensation&#8221; means the transfer of money or anything of value.\n\t\t\t&#8220;Compensation&#8221; does not mean payment based on sales of goods or\nservices to persons who are not participants in the scheme and who are not\npurchasing in order to participate in the scheme;\n\n2. &#8220;Consideration&#8221; means the payment of cash or the purchase of\ngoods, services, or intangible property;\n\n3. &#8220;Promotes&#8221; means inducing one or more other persons to become a\nparticipant; and\n\n4. &#8220;Pyramid promotional scheme&#8221; means any plan or operation by which\na person gives consideration for the opportunity to receive compensation a\nmajority of which is derived from the introduction of other persons into the\nplan or operation rather than from the sale or consumption of goods, services,\nor intangible property by a participant or other persons introduced into the\nplan or operation.\n\t\t\tAll contracts and agreements, now existing or hereafter formed, whereof the\nwhole or any part of the consideration is given for the right to participate in\npyramid promotional scheme programs, are against public policy, void and\nunenforceable.\n\t\t\tAny violation of the provisions of this section shall constitute a prohibited\npractice under the provisions of &#xA7; 59.1-200 and shall be subject to any and\nall of the enforcement provisions of the Virginia Consumer Protection Act\n(&#xA7; 59.1-196 et seq.).\n\nHISTORY: Code 1950, \u00a7\u00a7 59.1-67.1, 59.1-67.2; 1970, c. 450; 1975, cc. 14, 15;\n2008, cc. 791, 842.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}