(a)As used in this act:
(i)"Multilevel distribution companies" means any
person, firm, corporation or other business entity which sells,
distributes or supplies for a valuable consideration, goods or
services through independent agents, contractors or
distributors, at different levels wherein such participants may
recruit other participants, and wherein commissions,
cross-commissions, bonuses, refunds, discounts, dividends or
other considerations in the program are, or may be, paid as a
result of the sale of such goods or services or the recruitment,
actions or performances of additional participants;
(ii)"Multilevel distribution marketing plan" means
any agreement for a definite or indefinite period, either
expressed or implied, in which a person agrees, for a valuable
consideration, t
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(a) As used in this act:
(i) "Multilevel distribution companies" means any
person, firm, corporation or other business entity which sells,
distributes or supplies for a valuable consideration, goods or
services through independent agents, contractors or
distributors, at different levels wherein such participants may
recruit other participants, and wherein commissions,
cross-commissions, bonuses, refunds, discounts, dividends or
other considerations in the program are, or may be, paid as a
result of the sale of such goods or services or the recruitment,
actions or performances of additional participants;
(ii) "Multilevel distribution marketing plan" means
any agreement for a definite or indefinite period, either
expressed or implied, in which a person agrees, for a valuable
consideration, to distribute goods or services of a multilevel
distribution company to members of the public or to persons who
occupy different levels in the multilevel distribution company's
distribution system;
(iii) "Distributor" means any independent contracted
person, agent, employer or participant who has agreed to
perform, at one (1) or more levels in a multilevel distribution
marketing plan, the functions of distributing the goods or
services of the multilevel distribution company or the
recruitment of subordinate distributors or both functions;
(iv) "Resalable condition" means products that will
pass without objection in the trade, or are still fit for the
ordinary purposes for which the products are used;
(v) "Referral sale" means any inducement offered to a
person, for the purpose of selling a product or service, which
is the opportunity to receive compensation without exercising a
bona fide and commensurate responsibility for the sale of the
product or service to the ultimate customer; or any offer to a
person of an opportunity to receive compensation related to the
recruitment of third persons who will be entitled to
substantially similar recruiting opportunities when the offer is
used as an inducement for the payment of an entrance fee, given
toward a purchase or other consideration, except for the actual
cost of necessary sales materials by the persons to whom the
offer is made;
(vi) "Endless chain" means any scheme or plan for the
disposal or distribution of property or services whereby a
participant pays a valuable consideration for the chance to
receive compensation for introducing one (1) or more additional
persons into participation in the scheme or plan or for the
chance to receive compensation when the person introduced by the
participant introduces a new participant;
(vii) "Documentary material" means the original or a
copy of any book, record, report, memorandum, paper,
communication, tabulation, map, chart, photograph, mechanical
transcription, other tangible document or recording,
reproductions of information stored magnetically, file layout,
code conversion tables, computer programs to convert file to
readable printout, wherever situate.