Oregon Statutes Title 50 Trade Regulations and Practices
Chapter 646- Trade Practices and Antitrust Regulation (excerpts)
§ 646.608. Additional unlawful business, trade practices
A person engages in an unlawful practice if in the course of the person’s business, vocation, or occupation the person does any of the following:
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(r) Organizes or induces or attempts to induce membership in a pyramid club.
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§ 646.609. “Pyramid club” and “investment” defined
As used in ORS 646.608 (Additional unlawful business, trade practices) (1)(r), “pyramid club” means a sales device whereby a person, upon condition that the person make an investment, is granted a license or right to solicit or recruit for economic gain one or more additional persons who are also granted such license or right upon condition of making an investment and who may further perpetuate the chain of persons who are granted such license or right upon such condition. “Pyramid club” also includes any such sales device which does not involve the sale or distribution of any real estate, goods or services, including but not limited to a chain letter scheme. A limitation as to the number of persons who may participate, or the presence of additional conditions affecting eligibility for such license or right to recruit or solicit or the receipt of economic gain therefrom, does not change the identity of the scheme as a pyramid club. As used herein, “investment” means any acquisition, for a consideration other than personal services, of property, tangible or intangible, and includes without limitation, franchises, business opportunities and services. It does not include sales demonstration equipment and materials furnished at cost for use in making sales and not for resale. For the purpose of ORS 646.608 (Additional unlawful business, trade practices) (1)(r), any person who organizes or attempts to induce membership in a pyramid club is acting in the course of the person’s business, vocation or occupation. [1973 c.513 §3; 1981 c.379 §1]
§ 646.642. Civil Penalties
(1) Any person who willfully violates the terms of an injunction issued under ORS 646.632 (Enjoining unlawful trade practices) shall forfeit and pay to the state a civil penalty to be set by the court of not more than $25,000 per violation. For the purposes of this section, the court issuing the injunction shall retain jurisdiction and the cause shall be continued, and in such cases the prosecuting attorney acting in the name of the state may petition for recovery of civil penalties.
(2) Any person who willfully violates any provision of an assurance of voluntary compliance approved and filed with an appropriate court under ORS 646.632 (Enjoining unlawful trade practices) shall forfeit and pay to the state a civil penalty to be set by the court of not more than $25,000 per violation. Any prosecuting attorney may apply to an appropriate court for recovery of such civil penalty. In any action brought by a prosecuting attorney under this section, and in any contempt action brought by a prosecuting attorney pursuant to ORS 646.632 (Enjoining unlawful trade practices) (4), the court may award to the prevailing party, in addition to any other relief provided by law, reasonable attorney fees and costs at trial and on appeal.
(3) In any suit brought under ORS 646.632 (Enjoining unlawful trade practices), if the court finds that a person is willfully using or has willfully used a method, act or practice declared unlawful by ORS 646.607 (Unlawful business, trade practices) or 646.608 (Additional unlawful business, trade practices), the prosecuting attorney, upon petition to the court, may recover, on behalf of the state, a civil penalty to be set by the court of not exceeding $25,000 per violation. [1971 c.744 §17; 1975 c.437 §5; 1977 c.195 §10; 1989 c.745 §2; 1995 c.618 §100]