KANSAS STATUTES AND CODES

21-3762. Establishing, operating, advertising or promoting a pyramid promotional scheme.

21-3762

Chapter 21.--CRIMES AND PUNISHMENTS PART II.--PROHIBITED CONDUCT Article 37.--CRIMES AGAINST PROPERTY

21-3762. Establishing, operating, advertising or promoting a pyramidpromotional scheme.(a) As used in this section, "pyramid promotional scheme" meansany plan or operation by which a participant gives consideration for theopportunity to receive compensation which is derived primarily from anyperson's introduction of other persons into participation in the plan oroperation rather than from the sale of goods, services or intangible propertyby the participant or other persons introduced into the plan or operation.

(b) Establishing, operating, advertising or promoting a pyramid promotionalscheme shall be a severity level 9, nonperson felony.

(c) A limitation as to the number of persons who may participate or thepresence of additional conditions affecting eligibility for the opportunity toreceive compensation under the plan or operation does not change the identityof the scheme as a pyramid promotional scheme nor is it a defense under thissection that a participant, on giving consideration, obtains any goods,services or intangible property in addition to the right to receivecompensation.

(d) The attorney general, or county attorney or district attorney, or both,may institute criminal action to prosecute this offense.

(e) This section shall be part of and supplemental to the Kansas criminalcode.

History: L. 1997, ch. 178, § 1; May 22.