PYRAMID PROMOTIONAL SCHEMES; ENDLESS CHAINS

NRS 598.100 Definitions. For the purposes of NRS 598.100 to 598.130, inclusive:

 1. Compensation does not mean payment based on sales of goods or services to persons who are not participants in a pyramid promotional scheme or endless chain and who are not purchasing in order to participate in such a program.

 2. Promotes means inducing one or more other persons to become a participant in a pyramid promotional scheme or endless chain.

 3. A "pyramid promotional scheme" means any program or plan for the disposal or distribution of property and merchandise or property or merchandise by which a participant gives or pays a valuable consideration for the opportunity or chance to receive any compensation or thing of value in return for procuring or obtaining one or more additional persons to participate in the program, or for the opportunity to receive compensation of any kind when a person introduced to the program or plan by the participant procures or obtains a new participant in such a program.

 (Added to NRS by 1971, 666; A 1985, 530)

NRS 598.110 Pyramid promotional schemes or endless chains are deceptive trade practices. Every person who contrives, prepares, sets up, proposes, operates, advertises or promotes any pyramid promotional scheme or endless chain commits a deceptive trade practice for the purposes of NRS 598.0903 to 598.0999, inclusive.

 (Added to NRS by 1971, 666; A 1993, 1957)

NRS 598.120 Contracts and agreements voidable by participant. All contracts and agreements, existing or made in the future, which have any part of the consideration given for the right to participate in a pyramid promotional scheme or endless chain as defined in NRS 598.100 to 598.130, inclusive, are against public policy and voidable by a participant.

 (Added to NRS by 1971, 666)

NRS 598.130 Injunctive relief; receivership. In addition to any other relief available under NRS 598.100 to 598.130, inclusive:

 1. The Attorney General or any district attorney may commence an action in the district court having jurisdiction of the area where a pyramid promotional scheme or endless chain is being prepared, operated or promoted to enjoin or obtain any other equitable relief to prevent the further preparation, operation, promotion or prosecution of such scheme or chain. In addition to the relief authorized by this section, the court may award reasonable attorneys? fees and costs in any action brought under this section.

 2. The Attorney General or any district attorney may petition the district court having jurisdiction of the area where a pyramid promotional scheme or endless chain is being prepared, operated or promoted to appoint receivers to secure and distribute in an equitable manner any assets received by any participant as a result of such scheme or program. Any such distribution must effect, to the extent possible, reimbursement for uncompensated payments made to become a participant in the scheme. In any such action, the court may, in addition to any other relief or reimbursement, award reasonable attorneys? fees and costs.

 (Added to NRS by 1971, 666; A 1993, 1957)