Chapter 57, Article 13 NMSA 1978 may be cited as the "Pyramid Promotional Schemes Act".
History: 1953 Comp., § 50-20-1, enacted by Laws 1973, ch. 377, § 1; 1987, ch. 100, § 1.
The 1987 amendment, effective June 19, 1987, substituted "Chapter 57, Article 13 NMSA 1978" for "This act" and "Pyramid Promotional Schemes Act" for "Pyramid or Multilevel Sales Act."
Applicability. — Section 15, Laws 1987, ch. 100, effective June 19, 1987, provided that the act applies only to pyramid promotional schemes established, operated, advertised or promoted on or after June 19, 1987.
Constitutionality. — The Pyramid or Multilevel Sales Act is not unconstitutionally vague and overbroad. State ex rel. Stratton v. Sinks, 1987-NMCA-092, 106 N.M. 213, 741 P.2d 435.
The Pyramid or Multilevel Sales Act does not operate as an unconstitutional restraint of trade. State ex rel. Stratton v. Sinks, 1987-NMCA-092, 106 N.M. 213, 741 P.2d 435.
Given the potentially deceptive nature of pyramids, there is a valid state interest in their regulation, and any infringement on first amendment rights to free speech and assembly is both negligible and subordinate. State ex rel. Stratton v. Sinks, 1987-NMCA-092, 106 N.M. 213, 741 P.2d 435.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 67 Am. Jur. 2d Sales § 86.
Enforceability of transaction entered into pursuant to referral sales arrangement, 14 A.L.R.3d 1420.
Validity of pyramid distribution plan, 54 A.L.R.3d 217.
77A C.J.S. Sales § 1 et seq.
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