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Bill

HB 265

Prohibition of Pyramid Promotional Schemes

2026 Regular Session Introduced by Ryan Chamberlin

HB 265 criminalizes pyramid promotional schemes in Florida, establishing penalties for operators who profit primarily through recruitment rather than legitimate product sales.

Now in Criminal Justice Subcommittee
#crimes
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Bill Summary · HB 265

Legislative bill overview

HB 265 prohibits pyramid promotional schemes in Florida and establishes legal consequences for their operation. The bill defines what constitutes a pyramid scheme and provides enforcement mechanisms through the criminal justice system.

Why is this important

Pyramid schemes defraud participants by promising returns primarily from recruiting rather than legitimate product sales, causing significant financial harm to vulnerable populations. Clarifying and strengthening prohibition laws helps law enforcement prosecute operators and provides statutory clarity for courts and consumers.

Potential points of contention

  • Definition scope: Determining where legitimate multi-level marketing ends and illegal pyramid schemes begin is notoriously difficult; overly broad definitions could catch legal direct sales businesses, while narrow ones may fail to catch sophisticated schemes
  • Enforcement burden: Requires prosecutors to prove that income came primarily from recruitment rather than retail sales, which demands complex financial analysis and expert testimony
  • Retroactivity concerns: Unclear whether provisions apply to ongoing schemes or only new ones, potentially affecting past participants seeking remedies

Compiled from official sources — confirm details with the bill’s official record.

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