Texas Business & Commerce Code
§ 17.461 — PYRAMID PROMOTIONAL SCHEME
BC § 17.461Title 2. COMPETITION AND TRADE PRACTICES · Ch. 17. DECEPTIVE TRADE PRACTICES · Art. E. DECEPTIVE TRADE PRACTICES AND CONSUMER PROTECTION
Statute text
View on source(a)In this section:
(1)"Compensation" means payment of money, a financial benefit, or another thing of value. The term does not include payment based on sale of a product to a person, including a participant, who purchases the product for actual use or consumption.
(2)"Consideration" means the payment of cash or the purchase of a product. The term does not include:
(A)a purchase of a product furnished at cost to be used in making a sale and not for resale;
(B)a purchase of a product subject to a repurchase agreement that complies with Subsection (b); or
(C)time and effort spent in pursuit of a sale or in a recruiting activity.
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Legislative history
Added by Acts 1995, 74th Leg., ch. 463, Sec. 2, eff. Sept. 1, 1995.