367.830 Definitions.
Unless the context otherwise requires: <br>(1) "Participant" shall include, but is not limited to, those who give consideration in
order to participate in the pyramid distribution plan;
(2) "Person" means natural persons, corporations, trusts, partnerships, incorporated or
unincorporated associations, or any other legal entity;
(3) "Promotes" means inducing one (1) or more other persons to become a participant; <br>(4) "Pyramid distribution plan" means any plan, program, device, scheme, or other
process by which a participant gives consideration for the opportunity to receive <br>compensation or things of value in return for inducing other persons to become <br>participants in the program;
(5) "Compensation" means payment of any money, thing of value, or financial benefit
conferred in return for inducing others to become participants in the pyramid <br>distribution plan. Compensation does not include payment based on sales of goods <br>or services by the person or by other participants in the plan to anyone, including a <br>participant in the plan, who is purchasing the goods or services for actual use or <br>consumption; and
(6) "Consideration" means the payment of cash or the purchase of goods, services, or
intangible property but does not include the purchase of goods or services furnished <br>at cost to be used in making sales and not for resale, nor does it include time and <br>effort spent in pursuit of sales or recruiting activities.
Effective: July 15, 1986 <br>Created 1986 Ky. Acts ch. 184, sec. 1, effective July 15, 1986.
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