Prohibition of Pyramid Promotional Schemes
Summary
Prohibition of Pyramid Promotional Schemes; Prohibits person from establishing, promoting, operating, or participating in pyramid promotional scheme; provides penalties; provides for restitution; provides that specified provisions & penalties are in addition to civil, administrative, or criminal actions provided by law
Bill status
died
1 of 4 stages cleared
Introduction
Oct 2025
Committee Review
Floor Vote
Governor
Introduced Oct 27, 2025
Last action Mar 13, 2026
Maddy AI version diff · 1 comparison
What changed between versions
H 265 Filed
→
H 265 c1
·
4 edits
MODERATE
The bill was streamlined by removing the short title 'Direct Sales Consumer Protection Act' and deleting the requirement for the Department of Legal Affairs to issue a complaint and cease and desist order. The definition of a pyramid scheme was expanded to include a $100 investment threshold and clarified what constitutes consideration versus legitimate sales activities. The new statute section was reorganized to consolidate definitions and penalties into a single section rather than spreading them across multiple sections.
Scope change
The bill's scope remains focused on prohibiting pyramid promotional schemes, but the enforcement mechanism was simplified by removing the administrative complaint requirement.
ENFORCEMENT
Deleted the requirement for the Department of Legal Affairs to issue and serve a complaint and cease and desist order in certain instances.
DEFINITION
Updated the definition of a pyramid sales scheme to specify a $100 investment threshold and clarify that consideration includes money or purchases but excludes goods/services at cost for resale and time/effort spent in sales activities.
REQUIREMENT
Removed the requirement for the department to apply for an injunction and the procedures for cease and desist orders.
TECHNICAL
Consolidated the statute by merging multiple sections into one and removing the short title 'Direct Sales Consumer Protection Act'.
Floor votes
How they voted
No floor votes recorded yet.
Full legislative history
Actions timeline
Total actions
18
Key actions
5
Committee
12
Jan 21, 2026
Lower · Passed
Now in Industries & Professional Activities Subcommittee
lower
Jan 21, 2026
Committee
Referred to Judiciary Committee
lower
Jan 21, 2026
Committee
Referred to Justice Budget Subcommittee
lower
Jan 21, 2026
Committee
Referred to Industries & Professional Activities Subcommittee
lower
Jan 20, 2026
Lower · Passed
Reported out of Criminal Justice Subcommittee
lower
Jan 20, 2026
Lower · Passed
Favorable with CS by Criminal Justice Subcommittee
lower
Jan 15, 2026
Lower · Passed
PCS added to Criminal Justice Subcommittee agenda
lower
Nov 4, 2025
Lower · Passed
Now in Criminal Justice Subcommittee
lower
Nov 4, 2025
Committee
Referred to Judiciary Committee
lower
Nov 4, 2025
Committee
Referred to Justice Budget Subcommittee
lower
Nov 4, 2025
Committee
Referred to Industries & Professional Activities Subcommittee
lower
Nov 4, 2025
Committee
Referred to Criminal Justice Subcommittee
lower
1 primary · 0 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Ryan Chamberlin
RRepublican
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