MD CRIMINAL-LAW 8-404

Maryland Criminal Law Code Section 8-404 (2024) - Pyramid Promotional Schemes (a) (1) In this section the following words have the meanings indicated. (2) “Compensation” includes payment based on a sale or distribution made to a person who: (i) is a participant in a plan or operation; or (ii) on making a payment, is entitled to become a participant. (3) “Consideration” does not include: (i) payment for purchase of goods or services furnished at cost for use in making sales to persons who are not participants in the scheme and who are not purchasing in order to participate in the scheme; (ii) time or effort spent in pursuit of sales or recruiting activities; or (iii) the right to receive a discount or rebate based on the purchase or acquisition of goods or services by a bona fide cooperati...