§480-3.3 Endless chain schemes. A person engages in an unfair method of competition and an unfair or deceptive act or practice within the meaning of section 480-2 when, in the conduct of any trade or commerce, the person contrives, prepares, sets up, proposes, or operates any endless chain scheme. As used in this section, an endless chain scheme means any scheme for the disposal or distribution of property whereby a participant pays a valuable consideration for the chance to receive compensation for introducing one or more additional persons into participation in the scheme, or for the chance to receive compensation when a person introduced by the participant introduces a new participant. Compensation, as used in this section, does not mean or include payments based upon sales made to persons who are not participants in the scheme and who are not purchasing in order to participate in the scheme. [L 1970, c 28, §1; gen ch 1985]
Structure Hawaii Revised Statutes
Title 26. Trade Regulation and Practice
480. Monopolies; Restraint of Trade
480-2 Unfair competition, practices, declared unlawful.
480-3.3 Endless chain schemes.
480-4 Combinations in restraint of trade, price-fixing and limitation of production prohibited.
480-5 Requirements and output contracts; tying agreements.
480-7 Mergers, acquisitions, holdings, and divestitures.
480-8 Interlocking directorates and relationships.
480-10 Exemption of labor organizations.
480-13 Suits by persons injured; amount of recovery, injunctions.
480-13.3 Class actions by private persons.
480-14 Suits by the State; amount of recovery.
480-15 Injunction by attorney general or the director of the office of consumer protection.
480-17 Individual liability for corporate or company act.
480-19 Additional parties defendant.
480-20 Duty of the attorney general; duty of county attorney, etc.
480-22 Judgment in favor of the State as evidence in private action; suspension of limitation.
480-23 Immunity from prosecution.