Promotion or participation in pyramid promotional scheme; prohibition; penalties.
MCL 445.2583
in effect445.2583. Promotion or participation in pyramid promotional scheme; prohibition; penalties.
Sec. 3.
(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 operation as a pyramid promotional scheme.
(2) A person that promotes a pyramid promotional scheme is guilty of a felony punishable by 1 or more of the following:
(a) Imprisonment for not more than 7 years.
(b) A fine of not more than $10,000.00 per violation.
(3) A person that knowingly participates in a pyramid promotional scheme is guilty of a misdemeanor punishable by imprisonment for not more than 90 days or a fine of not more than $1,000.00, or both.
2018, Act 186, Eff. Sept. 11, 2018
Source: Michigan Legislature (legislature.mi.gov)URL: https://legislature.mi.gov/Laws/MCL?objectName=mcl-445-2583Fetched: 10/20/2026