                                 CODE OF VIRGINIA

PYRAMID PROMOTIONAL SCHEMES; MISDEMEANOR; DEFINITIONS; CONTRACTS VOID (§
18.2-239)

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:

1. &#8220;Compensation&#8221; means the transfer of money or anything of value.
			&#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. &#8220;Consideration&#8221; means the payment of cash or the purchase of
goods, services, or intangible property;

3. &#8220;Promotes&#8221; means inducing one or more other persons to become a
participant; and

4. &#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.
			All 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.
			Any 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.).

HISTORY: Code 1950, §§ 59.1-67.1, 59.1-67.2; 1970, c. 450; 1975, cc. 14, 15;
2008, cc. 791, 842.