Legislation filed for the 2026 session would grant the Florida Attorney General broader powers to investigate and dismantle pyramid and recruitment-based sales operations through new enforcement mechanisms, penalties, and restitution requirements.
House Bill 265, filed by Rep. Ryan Chamberlin and entitled the Direct Sales Consumer Protection Act, would repeal the pyramid-scheme provisions currently embedded in the state’s gambling statute and create a new standalone consumer-protection law
The proposal would formally prohibit anyone from establishing, promoting, operating, or participating in a “pyramid promotional scheme,” defined as a plan in which participants pay money or other value for the right to receive compensation based primarily on recruiting new members rather than selling or consuming legitimate products or services.
The bill authorizes the Department of Legal Affairs to issue cease-and-desist orders, conduct administrative hearings, and impose civil penalties of up to $10,000 per violation once a final order takes effect.
Each day of noncompliance would count as a separate offense. The department could also seek temporary or permanent injunctions in court without posting bond and request the appointment of a receiver to take control of records, assets, and operations tied to unlawful activity.
Operating or promoting a pyramid scheme would be classified as a third-degree felony, while participation would be a first-degree misdemeanor. Judges would be required to order restitution for victims, including reimbursement of investigation costs and recovery of profits gained from the offense.
The measure includes exceptions for legitimate direct-sales and multilevel marketing companies that base earnings on actual product sales and offer buy-back programs for unsold inventory.
