A. "Multi-level marketing program" means any marketing program in which participants pay money to the program promoter in return for which program participants obtain the right to
(1) recruit additional participants, or to have additional participants placed by the promoter or any other person into the program participant's downline, tree, cooperative, income center, or other similar program grouping;
(2) sell goods or services; and
(3) receive payment or other compensation;
provided that:
(1) the payments received by each program participant are derived primarily from the sale of goods or services, and not from recruiting additional participants nor having additional participants placed into the program participant's downline, tree, cooperative, income center, or other similar program grouping; and
(2) the marketing program has instituted and enforces rules to ensure it is not a plan where participants earn profits primarily by recruiting additional participants rather than by the sale of goods or services to persons not eligible to recruit participants into the marketing program. For purposes of this Order, the phrase "goods or services" includes, but is not limited to, child sponsorships or audio and video tapes from a lending library, but does not include a membership or opportunity to participate in a sales or marketing program.
B. "Chain or pyramid marketing program" is a sales device whereby a person, under a condition that he or she make a payment, directly or indirectly, is granted a license or right to recruit for consideration one or more additional persons who are also granted a license or right upon condition of making a payment, directly or indirectly, and may further perpetuate the chain or pyramid of persons who are granted a license or right upon such condition. A limitation as to the number of persons who may participate, or the presence of additional conditions affecting eligibility for the above license or right to recruit or the receipt of profits therefrom, does not change the identity of the program as a chain or pyramid marketing program.
C. "Person" means a natural person, organization or other legal entity, including a corporation, partnership, proprietorship, association, cooperative, government or governmental subdivision or agency, or any other group or combination acting as an entity.
D. "Assisting" means providing the means and instrumentalities for, or otherwise facilitating, any conduct that a defendant knows or should know violates any provision of Section I or II of this Order. "Assisting" includes, but is not limited to, formulating or providing or arranging for the formulation or provision of written or electronic promotional materials that violate any provision of Section I or II of this Order.
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