Legislative History
| House Bill/Resolution NO. HB12249 |
| FULL TITLE : AN ACT BANNING THE CHAIN DISTRIBUTION PLANS OR PYRAMID SALES SCHEMES AMENDING FOR THE PURPOSE REPUBLIC ACT NUMBERED SEVENTY-THREE HUNDRED AND NINETY-FOUR AND FOR OTHER PURPOSES |
| ABSTRACT : "Pyramid Sales Ban Act of 2000." Chain distribution plans or pyramid sales schemes mean sales devices whereby a person, upon condition that he makes an investment, is granted by the manufacturers, PRODUCERS, IMPORTERS, OPERATORS or [his] THEIR representative a right to recruit for profit one or more additional persons who will also be granted such right to recruit condition of making similar investments. Provided, that the profits of the person employing such a plan are derived primarily from the recruitment of the other persons into the plan rather than the same of consumer products, services and credit. Provided, further, that the limitation on the number of participants does not change the nature of the plan. THE SECURITIES AND EXCHANGEE COMMISSION SHALL MOTU PROPIO CANCEL REGISTRATIONS OF CORPORATIONS INVOLVED IN PYRAMID SALES SCHEMES. THE DEPARTMENT OF TRANDE AND INDUSTRY SHALL EXERCISE THE SAME POWER INSOFAR AS SOLE PROPRIETORS AND PARTNERSHIPS ARE CONCERNED. |
| PRINCIPAL AUTHOR/S : PICHAY, PROSPERO JR. A. |
| DATE FILED : 2000-08-31 |
| SIGNIFICANCE: NATIONAL |
| ADMINISTRATION BILL? No |
| URGENT BILL? No |
| ACTIONS TAKEN BY THE COMMITTEE ON RULES |
| REFERRAL TO THE COMMITTEE ON TRADE AND INDUSTRY ON 2000-09-19 |
Abstract
"Pyramid Sales Ban Act of 2000." Chain distribution plans or pyramid sales schemes mean sales devices whereby a person, upon condition that he makes an investment, is granted by the manufacturers, PRODUCERS, IMPORTERS, OPERATORS or [his] THEIR representative a right to recruit for profit one or more additional persons who will also be granted such right to recruit condition of making similar investments. Provided, that the profits of the person employing such a plan are derived primarily from the recruitment of the other persons into the plan rather than the same of consumer products, services and credit. Provided, further, that the limitation on the number of participants does not change the nature of the plan. THE SECURITIES AND EXCHANGEE COMMISSION SHALL MOTU PROPIO CANCEL REGISTRATIONS OF CORPORATIONS INVOLVED IN PYRAMID SALES SCHEMES. THE DEPARTMENT OF TRANDE AND INDUSTRY SHALL EXERCISE THE SAME POWER INSOFAR AS SOLE PROPRIETORS AND PARTNERSHIPS ARE CONCERNED.
Disclaimer
Note: Legislative history and other information accessed from Congress Legis. Information as of April 20, 2022.