Columbus - 

State Representative Dorothy Pelanda (R-Marysville) today applauded the Ohio House’s passage of legislation strengthening the law on pyramid promotional schemes.

House Bill 329 works to protect consumers against scams by drawing a line between direct selling companies and pyramid schemes. The bill clarifies current law, seeking to mitigate confusion among the public between legitimate direct selling companies and pyramid schemes looking to defraud consumers.

“I am pleased to see this common-sense consumer reform bill pass with overwhelming support today,” said Representative Pelanda. “I look forward to working with my colleagues in the Senate to continue moving House Bill 329 forward.”

Specifically, the bill will clarify enforcement against pyramid schemes, differentiate legal income earning opportunities, and establish direct selling companies as legitimate business practices. A violation of the prohibition of a pyramid promotional scheme is considered a deceptive act in connection with a consumer transaction, an infringement of the Consumer Sales Practice Act.

House Bill 329 now awaits consideration by the Ohio Senate.

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