A. A person shall not establish, operate, advertise or promote a pyramid promotional scheme.
B. A limitation as to the number of persons who may participate or the presence of additional conditions affecting eligibility for the opportunity to receive compensation under the plan or operation does not change the identity of the scheme as a pyramid promotional scheme nor is it a defense under this article that a participant, on giving consideration, obtains any goods, services or intangible property in addition to the right to receive compensation.
History: 1978 Comp., § 57-13-3, enacted by Laws 1987, ch. 100, § 3.
Repeals and reenactments. — Laws 1987, ch. 100, § 3 repealed former 57-13-3 NMSA 1978, as enacted by Laws 1973, ch. 377, § 3, and enacted a new section, effective June 19, 1987.
Structure New Mexico Statutes
Chapter 57 - Trade Practices and Regulations
Article 13 - Pyramid or Multilevel Sales
Section 57-13-1 - Short title.
Section 57-13-2 - Definitions.
Section 57-13-3 - Prohibition; defenses excluded.
Section 57-13-4 - Restraint of prohibited acts; restitution; penalties.
Section 57-13-5 - Settlements.
Section 57-13-6 - Private remedies.
Section 57-13-8 - Pyramid Promotional Schemes Act restitution fund.
Section 57-13-9 - Civil investigative demand.
Section 57-13-11 - Regulations.
Section 57-13-12 - Construction.
Section 57-13-13 - Enforcement.
Section 57-13-14 - Advertising media excluded.
Section 57-13-15 - Issuance of ne exeat.
Section 57-13-16 - Posting of bond.