State Codes and Statutes
Statutes > Michigan > Chapter-445 > Act-269-of-1974 > Section-445-1528FRANCHISE INVESTMENT LAW (EXCERPT)
Act 269 of 1974
445.1528 Pyramid or chain promotion or distribution.
Sec. 28.
(1) A person may not offer or sell any form of participation in a pyramid or chain promotion. A pyramid or chain promotion is any plan or scheme or device by which (a) a participant gives a valuable consideration for the opportunity to receive compensation or things of value in return for inducing other persons to become participants in the program or (b) a participant is to receive compensation when a person introduced by the participant introduces one or more additional persons into participation in the plan, each of whom receives the same or similar right, privilege, license, chance, or opportunity.
(2) A pyramid or chain promotion is declared to be illegal and against the public policy of the state. Any contract made in violation of this section is voidable at the sole option of the purchaser.
(3) The department shall not accept for filing a franchise which involves a pyramid or chain distribution contrary to the laws of this state.
History: 1974, Act 269, Eff. Oct. 15, 1974
