Pyramid Sales: Hearing Before the Subcommittee for Consumers of the Committee on Commerce, United States Senate, Ninety-third Congress, Second Session, on S. 1939 ... July 10, 1974 |
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abuses action additional persons Attorney Axelrad BROUSE Calif chain distributor scheme Chairman Committee on Commerce companies CONGRES Corp criminal definition of pyramid Direct Selling Association district court Federal Trade Commission fees franchisor Fredette Glenn Turner GORTON hearings Holiday Magic include payments inducing initial financial investment International Franchise Association investors IRMA JOEL WEISBERG legislation legitimate business legitimate direct selling license marketing ment Minn Minnesota Mondale bill opportunity P.O. Box persons into participation preempt preemption problem profit purchase pyramid investment scheme pyramid law pyramid sales scheme pyramid sales transactions pyramid schemes receive compensation restitution retail right to recruit right to sell sale or distribution sales demonstration equipment Section 1(d sell the right Senator MONDALE Senator Moss Southland Corp Sta-Power statement statute subfranchise temporary restraining order Thank tion U.S. Senate United valuable consideration violation WARREN G Warren Spannaus Washington WEISBERG ZEIDMAN
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Page 16 - plan through a chain process. This chain process is further defined to include payment of valuable consideration for the right or opportunity to either receive compensation for introducing one or more additional persons into participation in the plan—each of whom receives the same or a similar right or opportunity—or to receive compensation when a
Page 56 - privilege, license, chance, or opportunity— (A) to receive compensation for introducing one or more additional persons into participation in the plan, each of whom receives the same or a similar right, privilege, license, chance, or opportunity; or
Page 7 - state pyramid sales law to the extent that it is not inconsistent with the provisions of this bill. The Federal Trade Commission has proceeded against pyramid sales schemes as violation of the Federal Trade Commission Act in a number of cases. As a supplement, but not a substitute, for the Commission's present authority. S.
Page 7 - States district courts, and a two-year statute of limitation would be applicable. The Attorney General of the United States, or the chief law enforcement officer of any state in which the acts prohibited by the bill occur, would be authorized to institute, in the appropriate district court, actions to enjoin actual or imminent pyramid sales schemes. The bill includes a preemption provision to preserve
Page 11 - The Department of Justice recommends enactment of this legislation amended as suggested above in our comments directed to the provisions of the bill. The Office of Management and Budget has
Page 68 - (f) The term 'valuable consideration' means monetary payments to participate in a 'pyramid sales scheme' but does not include payments made for sales demonstration equipment and materials furnished on a nonprofit basis for use In making sales and not for resale, or
Page 65 - know if I can tell you the average override, but I would be happy to get that information for you and supply it for the record. Senator Moss. If you could, we would appreciate that very much, where info? Senator Moss. I wonder why section 5 does not have the same
Page 56 - pyramid sales scheme" includes any plan or operation for the sales or distribution of goods, services, or other property which contains any provision for increasing participation in the plan through a chain process, whereby a participant upon the condition of paying a valuable consideration obtains the
Page 70 - or instrumentalities of transportation or communication in interstate or foreign commerce or by use of the mails, knowingly sells or offers or attempts to sell a participation or the right to participate in a pyramid investment scheme shall be fined not more than $10,000
Page 24 - courts of the United States shall have original jurisdiction of any action brought under this section. An action under this section may be brought within two years from the date on which such consideration was paid,