2006 Code of Virginia § 18.2-239 - Pyramid promotional schemes; misdemeanor; definitions; contracts void

18.2-239. Pyramid promotional schemes; misdemeanor; definitions; contractsvoid.

Every person who contrives, prepares, sets up, operates, advertises orpromotes any pyramid promotional scheme shall be guilty of a Class 1misdemeanor. For the purposes of this section:

(a) "Pyramid promotional scheme" means any program utilizing a pyramid orchain process by which a participant gives a valuable consideration for theopportunity to receive compensation or things of value in return for inducingother persons to become participants in the program;

(b) "Compensation" does not mean payment based on sales of goods orservices to persons who are not participants in the scheme and who are notpurchasing in order to participate in the scheme; and

(c) "Promotes" shall mean inducing one or more other persons to become aparticipant.

All contracts and agreements, now existing or hereafter formed, whereof thewhole or any part of the consideration is given for the right to participatein pyramid promotional scheme programs, are against public policy, void andunenforceable.

(Code 1950, 59.1-67.1, 59.1-67.2; 1970, c. 450; 1975, cc. 14, 15.)