Mich. Comp. Laws § 445.2581
Short title.
This act shall be known and may be cited as the "pyramid promotional scheme act".
Michigan Compiled Laws — PYRAMID PROMOTIONAL SCHEME ACT (Act 186 of 2018)
Michigan · statute · 186 of 2018, Mich. Comp. Laws · 6 active provisions
Provisions
Mich. Comp. Laws § 445.2582
Definitions.
As used in this act: (a) "Compensation" means a payment of any money, thing of value, or financial benefit conferred in return for inducing an individual to participate in a pyramid promotional scheme. (b) "Consideration" means the payment of cash or anything of value or the purchase of goods, services, or intangible p…
Mich. Comp. Laws § 445.2583
Promotion or participation in pyramid promotional scheme; prohibition; penalties.
(1) A person shall not promote or participate in a pyramid promotional scheme. A limitation as to the number of individuals who may participate or the presence of additional conditions affecting eligibility for the opportunity to receive compensation under a plan or operation does not change the identity of the plan or…
Mich. Comp. Laws § 445.2584
Reasonable cause; attorney general duties; cease and desist requirements; circuit court review.
(1) If the attorney general has reasonable cause to believe that a person has engaged or is about to engage in any act or practice that violates this act, or any order issued under this act, the attorney general may do any of the following: (a) Subject to subsections (2) and (3), issue a cease and desist order against…
Mich. Comp. Laws § 445.2585
Rebuttable presumption.
There is a rebuttable presumption that a plan or operation is not a pyramid promotional scheme if both of the following conditions are satisfied: (a) The plan or operation does not cause inventory loading. (b) The plan or operation implements an inventory repurchase program.
Mich. Comp. Laws § 445.2586
Attorney general investigation; written demand to appear; failure to comply; hearing; confidentiality.
(1) If the attorney general has reasonable cause to believe that a person has information or is in possession, custody, or control of any document or other tangible object that is relevant to an investigation of a violation of this act, the attorney general, or a prosecuting attorney with the permission of or at the re…