Modifies provisions relating to pyramid sales schemes

HB 1138 modifies Missouri's legal definitions related to pyramid sales schemes by repealing and replacing sections 407.400 and 407.405 of the Revised Statutes of Missouri (RSMo). It establishes clear definitions for terms like "bona fide inventory repurchase program" (requiring repurchase of inventory within 12 months at ≥90% of original cost) and "compensation" (payments for recruiting into schemes). The bill directly affects businesses operating multi-level marketing or sales programs in Missouri, clarifying what constitutes deceptive practices. These definitions help authorities distinguish legitimate sales models from illegal pyramid schemes by specifying fair inventory repurchase terms and prohibited compensation structures.