HB 1120 Missouri House · 2025 Regular Session

Modifies provisions relating to pyramid sales schemes

HB 1120 requires businesses operating multi-level marketing plans to implement a "bona fide inventory repurchase program" for independent salespeople. This means businesses must buy back current, marketable inventory from salespeople at 90% of original cost within 12 months if their relationship ends, excluding expired, used, or seasonal items. The bill mandates clear disclosure in recruiting materials about which inventory isn't eligible for repurchase. It directly affects businesses using sales models that could resemble pyramid schemes and their independent salespeople, preventing "inventory loading" (forcing salespeople to buy unsellable stock).
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2025
Committee Review
Floor Vote
Governor
Introduced Jan 29, 2025 Last action Apr 29, 2025
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What changed between versions

Introduced House Committee Substitute · 2 edits
MINOR
The bill was amended to combine HB 1120 with HB 1138, changing the bill number designation. A new definition was added to clarify that 'salespersons' includes demonstrations, equipment, and materials furnished at cost for sales purposes, which was previously excluded from the definition of intangible property. This change expands the scope of what is considered intangible property in the context of the bill.
Scope change
The bill now applies to both HB 1120 and HB 1138, and the definition of intangible property was expanded to include sales demonstrations, equipment, and materials furnished at cost.
SCOPE

The bill number designation was changed from HB 1120 to include both HB 1120 and HB 1138.

DEFINITION

A new provision was added to the definition of intangible property to explicitly include demonstrations, equipment, and materials furnished at cost for use in making sales and not for resale.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
8
Key actions
2
Committee
4
Apr 29, 2025
Committee
Referred: Rules - Administrative(H)
lower
Apr 9, 2025
Lower · Passed
HCS Reported Do Pass (H) - AYES: 7 NOES: 0 PRESENT: 0
lower
Apr 9, 2025
Lower · Passed
HCS Voted Do Pass (H)
lower
Feb 27, 2025
Committee
Referred: Commerce(H)
lower
Jan 29, 2025
Introduced
Introduced and Read First Time (H)
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Holly Jones
Holly Jones
RRepublican
MO
88