Ohio Revised Code Title 13: Commercial Transactions
Chapter 1333: Trade Practices
Section 1333.91. Pyramid promotional scheme definitions.
As used in sections 1333.91 to 1333.94 of the Revised Code:
(A) “Pyramid promotional scheme” means any plan or operation by which individuals pay consideration for the chance or opportunity to receive compensation that is derived primarily from recruiting other individuals into the plan or operation rather than from the sale of products or services to ultimate users or from the consumption or use of products or services by ultimate users.
(B) “Compensation” means money, financial benefit, or anything of value. Compensation does not include payment based upon sales made to persons who are not participants in a pyramid promotional scheme, and who are not purchasing in order to participate in the plan or operation.
(C) “Consideration” means the payment of money or anything of value or the purchase of products, services, or intangible property. The term does not include:
(1) Payment for sales demonstration equipment and materials furnished at cost for use in making sales and not for resale;
(2) Any time or effort spent in pursuit of sales or recruiting activities.
(D) “Ultimate user” means an individual who consumes or uses a product or service, whether or not the individual is a participant in the plan or operation.
Section 1333.92. Prohibition.
No person shall propose, plan, prepare, or operate a pyramid promotional scheme.
Section 1333.93. Contract void – civil action.
Any contract made in violation of section 1333.92 of the Revised Code is void. Any individual who has paid consideration for the chance or opportunity to participate in a pyramid promotional scheme may recover, in a civil action, the amount of the consideration paid, together with reasonable attorney fees, from any participant who has received compensation under either of the following circumstances:
(A) For introducing the individual into participation in a pyramid promotional scheme;
(B) When another participant has introduced the individual into participation in a pyramid promotional scheme.
Section 1333.94 Violation; remedies.
(A) Failure to comply with section 1333.92 of the Revised Code constitutes an unfair or deceptive act or practice in connection with a consumer transaction in violation of section 1345.02 of the Revised Code.
(B) The attorney general may do the following:
(1) Whenever it appears that a person is violating or about to violate section 1333.92 of the Revised Code, bring an action in the court of common pleas to enjoin the violation. Upon a proper showing, a temporary restraining order, or a preliminary or permanent injunction shall be granted without bond. The court may impose a penalty of not more than five thousand dollars for each day of violation of a temporary restraining order or preliminary or permanent injunction issued under this section.
(2) Use all the powers and remedies available to the attorney general to enforce sections 1345.01 to 1345.13 of the Revised Code to enforce sections 1333.91 to 1333.94 of the Revised Code.
Section 1333.95 Additional remedies.
The remedies in sections 1333.91 to 1333.95 of the Revised Code are in addition to remedies otherwise available.
Section 1333.99. Penalty.
(A) Whoever violates sections 1333.01 to 1333.04 of the Revised Code is guilty of a minor misdemeanor.
(B) Whoever violates section 1333.12 or 1333.71 of the Revised Code is guilty of a misdemeanor of the fourth degree.
(C) Whoever violates section 1333.36 of the Revised Code is guilty of a misdemeanor of the third degree.
(D) A prosecuting attorney may file an action to restrain any person found in violation of section 1333.36 of the Revised Code. Upon the filing of such an action, the common pleas court may receive evidence of such violation and forthwith grant a temporary restraining order as may be prayed for, pending a hearing on the merits of said cause.
(E) Whoever violates division (A)(1) of section 1333.52 or section 1333.81 of the Revised Code is guilty of a misdemeanor of the first degree.
(F) Whoever violates division (A)(2) or (B) of section 1333.52 of the Revised Code is guilty of a misdemeanor of the second degree.
(G) Except as otherwise provided in this division, whoever violates section 1333.92 of the Revised Code is guilty of a misdemeanor of the first degree. If the value of the compensation is one thousand dollars or more and less than seven thousand five hundred dollars, whoever violates section 1333.92 of the Revised Code is guilty of a felony of the fifth degree. If the value of the compensation is seven thousand five hundred dollars or more and less than one hundred fifty thousand dollars, whoever violates section 1333.92 of the Revised Code is guilty of a felony of the fourth degree. If the value of the compensation is one hundred fifty thousand dollars or more, whoever violates section 1333.92 of the Revised Code is guilty of a felony of the third degree.