37-33-7. Pyramid promotional schemes prohibited--Operation of scheme a felony--Participation in scheme a misdemeanor.
No person may establish, promote, operate, or participate in any pyramid promotional scheme. 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 does not change the identity of the plan as a pyramid promotional scheme. It is not a defense under this section that a person, on giving consideration, obtains goods, services, or intangible property in addition to the right to receive compensation.
Any person who establishes or operates a pyramid promotional scheme is guilty of a Class 5 felony. Any person who knowingly participates in a pyramid promotional scheme is guilty of a Class 1 misdemeanor.
Source: SL 2003, ch 213, ยง7.
Structure South Dakota Codified Laws
Chapter 33 - Pyramid Promotional Schemes
Section 37-33-1 - "Promote" defined.
Section 37-33-3 - "Pyramid promotional scheme" defined.
Section 37-33-4 - "Compensation" defined.
Section 37-33-5 - "Consideration" defined.
Section 37-33-6 - "Inventory loading" defined.
Section 37-33-8 - Certain plans not defined as pyramid promotional schemes.
Section 37-33-9 - Attorney general may proceed against pyramid promotional schemes.