SESSION WATCH
Died SENATE · SESSION 2026

No. SB 712

Prohibition of Pyramid Promotional Schemes
Send via email
SPONSOR
Yarborough
FILED BY
Clay Yarborough — District 4, Republican [search donations]
EFFECTIVE
7/1/2026
DIED IN
Appropriations Committee on Criminal and Civil Justice
OFFICIAL RECORD
flsenate.gov/Session/Bill/2026/712

Filed under Criminal Justice.

PROVIDED SUMMARY

Prohibition of Pyramid Promotional Schemes; Citing this act as the “Direct Sales Consumer Protection Act”; prohibiting a person from establishing, promoting, operating, or participating in a pyramid promotional scheme; requiring the Department of Legal Affairs to issue and serve a complaint and cease and desist order in certain instances; providing penalties, etc.

Full bill text →

Plain English Summary

AI-GENERATED
Criminalizes pyramid schemes and mandates state enforcement.

The bill replaces the old pyramid sales scheme law with a new prohibition. It makes establishing, promoting, operating, or participating in a pyramid promotional scheme a crime.

The Department of Legal Affairs gains authority to issue cease and desist orders and seek civil penalties. Violators of final orders face up to $10,000 per violation.

Direct sellers are protected if compensation is based on product sales. The law requires a repurchase program for unsold inventory under specific conditions.

KEY PROVISIONS
§ 1 Criminal Penalties for Pyramid Schemes majors. 849.0913(5)(b)

AIEstablishing, promoting, or operating a pyramid promotional scheme is a third-degree felony, while participating is a first-degree misdemeanor.

“commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.” bill text, line 183 →
§ 2 Prohibition on Pyramid Promotional Schemes majors. 849.0913(2)

AIProhibits any person from establishing, promoting, operating, or participating in a pyramid promotional scheme, even if products are obtained.

“A person may not establish, promote, operate, or participate in a pyramid promotional scheme, even if such person, upon giving consideration, obtains products, goods, services, or” bill text, line 100 →
§ 3 Safe Harbor for Legitimate Direct Sales majors. 849.0913(3)(a)

AIExempts plans where compensation is based on product sales for personal use or resale, provided inventory repurchase programs are implemented.

“This section does not prohibit a plan or an operation in which participants give consideration in return for the right to receive compensation based on the purchase of products, g” bill text, line 105 →
§ 4 Inventory Repurchase Requirements moderates. 849.0913(3)(b)

AIRequires direct sales plans to repurchase current, marketable inventory at not less than 90% of original net cost within 12 months.

“repurchase of current and marketable inventory within 12 months after the date of purchase at not less than 90 percent of the original net cost, less appropriate setoffs” bill text, line 126 →
§ 5 Civil Penalties for Cease and Desist Violations moderates. 849.0913(4)(g)

AIImposes a civil penalty of up to $10,000 for each violation of a final cease and desist order, with each day of continuing failure deemed a separate offense.

“shall forfeit and pay to the state a civil penalty of up to $10,000 for each violation which shall accrue to the state and may be recovered in a civil action” bill text, line 171 →
§ 6 Restitution and Disgorgement moderates. 849.0913(5)(d)

AIRequires courts to order restitution to victims, including investigation expenses and disgorgement of profits realized by the convicted person.

“the court shall include expenses incurred in the investigation or prosecution of the offense as well as the disgorgement of any profits realized by a person convicted” bill text, line 192 →
§ 7 Injunction and Receiver Powers moderates. 849.0913(6)(a)

AIAllows the Department of Legal Affairs to seek injunctions without bond and for courts to appoint receivers to wind up the property and business of violators.

“Such injunction must be issued without bond. A single act in violation of this section is sufficient to authorize the issuance of an injunction.” bill text, line 201 →
§ 8 Removal of Old Pyramid Sales Scheme Definition moderates. 849.091(2)

AIDeletes the existing definition of "pyramid sales scheme" from Section 849.091, replacing it with the new, broader definition in Section 849.0913.

“A "pyramid sales scheme," which is any sales or marketing plan or operation whereby a person pays a consideration of any kind, or makes an investment of any kind, in excess of $100” bill text, line 49 →
TIMELINE
3/13/2026
Died in Appropriations Committee on Criminal and Civil Justice
2/12/2026
Now in Appropriations Committee on Criminal and Civil Justice
2/11/2026
Favorable by Criminal Justice; YEAS 8 NAYS 0
2/6/2026
On Committee agenda-- Criminal Justice, 02/11/26, 3:00 pm, 37...
1/13/2026
Introduced
12/16/2025
Referred to Criminal Justice; Appropriations Committee on Criminal...
12/3/2025
Filed
1 EARLIER →
STATUTES IT CHANGES
s. 849.091
+12 / −0
s. 849.091
+0 / −206
s. 849.0913
+1398 / −0
STAFF ANALYSES
2/10/2026 3:13 PM
2/11/2026 5:40 PM