(a) No person shallestablish, operate, participate in, or otherwise promote any pyramiddistribution plan, program, device or scheme whereby a participant pays avaluable consideration for the opportunity or chance to receive a fee orcompensation upon the introduction of other participants into the program,whether or not such opportunity or chance is received in conjunction with thepurchase of merchandise. A person who establishes or operates a pyramid distributionplan is guilty of a Class H felony. A person who participates in or otherwisepromotes a pyramid distribution plan is deemed to participate in a lottery andis guilty of a Class 2 misdemeanor.
(b) "Pyramiddistribution plan" means any program utilizing a pyramid or chain processby which a participant gives a valuable consideration for the opportunity toreceive compensation or things of value in return for inducing other persons tobecome participants in the program; and
"Compensation" doesnot mean payment based on sales of goods or services to persons who are notparticipants in the scheme, and who are not purchasing in order to participatein the scheme.
(c) Any judge of thesuperior court shall have jurisdiction, upon petition by the Attorney Generalof North Carolina or district attorney of the superior court, to enjoin, as anunfair or deceptive trade practice, the continuation of the scheme described insubsection (a); in such proceeding the court may assess civil penalties andattorneys' fees to the Attorney General or the District Attorney pursuant toG.S. 75‑15.2 and 75‑16.1; and the court may appoint a receiver tosecure and distribute assets obtained by any defendant through participation inany such scheme. The clear proceeds of civil penalties provided for in thissubsection shall be remitted to the Civil Penalty and Forfeiture Fund inaccordance with G.S. 115C‑457.2.
(d) Any contracthereafter created for which a part of the consideration consisted of theopportunity or chance to participate in a program described in subsection (a)is hereby declared to be contrary to public policy and therefore void andunenforceable. (1971, c. 875, s. 1; 1973, c. 47, s. 2; 1983, c. 721,s. 2; 1993, c. 539, s. 203; 1994, Ex. Sess., c. 24, s. 14(c); 1997‑443,s. 19.25(x); 1998‑215, s. 96.)
(a) No person shallestablish, operate, participate in, or otherwise promote any pyramiddistribution plan, program, device or scheme whereby a participant pays avaluable consideration for the opportunity or chance to receive a fee orcompensation upon the introduction of other participants into the program,whether or not such opportunity or chance is received in conjunction with thepurchase of merchandise. A person who establishes or operates a pyramid distributionplan is guilty of a Class H felony. A person who participates in or otherwisepromotes a pyramid distribution plan is deemed to participate in a lottery andis guilty of a Class 2 misdemeanor.
(b) "Pyramiddistribution plan" means any program utilizing a pyramid or chain processby which a participant gives a valuable consideration for the opportunity toreceive compensation or things of value in return for inducing other persons tobecome participants in the program; and
"Compensation" doesnot mean payment based on sales of goods or services to persons who are notparticipants in the scheme, and who are not purchasing in order to participatein the scheme.
(c) Any judge of thesuperior court shall have jurisdiction, upon petition by the Attorney Generalof North Carolina or district attorney of the superior court, to enjoin, as anunfair or deceptive trade practice, the continuation of the scheme described insubsection (a); in such proceeding the court may assess civil penalties andattorneys' fees to the Attorney General or the District Attorney pursuant toG.S. 75‑15.2 and 75‑16.1; and the court may appoint a receiver tosecure and distribute assets obtained by any defendant through participation inany such scheme. The clear proceeds of civil penalties provided for in thissubsection shall be remitted to the Civil Penalty and Forfeiture Fund inaccordance with G.S. 115C‑457.2.
(d) Any contracthereafter created for which a part of the consideration consisted of theopportunity or chance to participate in a program described in subsection (a)is hereby declared to be contrary to public policy and therefore void andunenforceable. (1971, c. 875, s. 1; 1973, c. 47, s. 2; 1983, c. 721,s. 2; 1993, c. 539, s. 203; 1994, Ex. Sess., c. 24, s. 14(c); 1997‑443,s. 19.25(x); 1998‑215, s. 96.)
(a) No person shallestablish, operate, participate in, or otherwise promote any pyramiddistribution plan, program, device or scheme whereby a participant pays avaluable consideration for the opportunity or chance to receive a fee orcompensation upon the introduction of other participants into the program,whether or not such opportunity or chance is received in conjunction with thepurchase of merchandise. A person who establishes or operates a pyramid distributionplan is guilty of a Class H felony. A person who participates in or otherwisepromotes a pyramid distribution plan is deemed to participate in a lottery andis guilty of a Class 2 misdemeanor.
(b) "Pyramiddistribution plan" means any program utilizing a pyramid or chain processby which a participant gives a valuable consideration for the opportunity toreceive compensation or things of value in return for inducing other persons tobecome participants in the program; and
"Compensation" doesnot mean payment based on sales of goods or services to persons who are notparticipants in the scheme, and who are not purchasing in order to participatein the scheme.
(c) Any judge of thesuperior court shall have jurisdiction, upon petition by the Attorney Generalof North Carolina or district attorney of the superior court, to enjoin, as anunfair or deceptive trade practice, the continuation of the scheme described insubsection (a); in such proceeding the court may assess civil penalties andattorneys' fees to the Attorney General or the District Attorney pursuant toG.S. 75‑15.2 and 75‑16.1; and the court may appoint a receiver tosecure and distribute assets obtained by any defendant through participation inany such scheme. The clear proceeds of civil penalties provided for in thissubsection shall be remitted to the Civil Penalty and Forfeiture Fund inaccordance with G.S. 115C‑457.2.
(d) Any contracthereafter created for which a part of the consideration consisted of theopportunity or chance to participate in a program described in subsection (a)is hereby declared to be contrary to public policy and therefore void andunenforceable. (1971, c. 875, s. 1; 1973, c. 47, s. 2; 1983, c. 721,s. 2; 1993, c. 539, s. 203; 1994, Ex. Sess., c. 24, s. 14(c); 1997‑443,s. 19.25(x); 1998‑215, s. 96.)
