Ryan Chamberlin renews push to crush pyramid scams in Florida

An Ocala lawmaker has refiled a bill that seeks to outlaw deceptive business practices in the Sunshine State, specifically pyramid promotional schemes.

Republican Rep. Ryan Chamberlin filed the measure (HB 265) that would prohibit any individual from establishing, promoting, participating in, or operating a pyramid promotional scheme.

A pyramid promotional scheme is a plan that encourages individuals to earn money by recruiting others into the scheme, rather than by selling genuine products or providing services.

It is further defined as any plan or operation set up so that only a certain number of people can join, either because of a strict limit or strict conditions for qualifying for compensation, including situations that require a payment or the purchase of products to join the scheme.

The bill would bar any requirement for individuals to purchase excessive inventory they are unlikely to sell, and the presence of products in such schemes does not make them lawful if participants primarily earn money through recruitment.

Legitimate direct sales businesses would remain protected, provided earnings come from selling products or services. They would, however, need to keep required inventory purchases reasonable and not excessive, and to offer a fair buyback program for unsold inventory.

The bill makes it clear that buying products or working hard to sell them is not illegal — the key is whether those earnings come from sales or recruitment.

It also removes existing language in Florida law that defines pyramid clubs and chain letters as lotteries.

The Florida Department of Legal Affairs would be authorized to issue cease and desist orders. Courts would be empowered to issue injunctions without bond, appoint receivers to manage and shut down offending businesses, and stay and reassign related civil actions to the judge overseeing the receivership.

In addition to other civil, administrative, or criminal actions under Florida law, violators could face a civil fine of up to $10,000 per offense. Organizers could face third-degree felony charges, which can carry a potential prison sentence of up to five years. Participants could face first-degree misdemeanor charges, with a possible sentence of up to one year in jail.

Chamberlain filed a similar measure (HB 249) during the 2025 Legislative Session; however, the measure died during its passage through the Criminal Justice Subcommittee.

The bill would further allow for restitution to victims, including repayment of profits and any investigation costs.

If passed, the bill would take effect July 1, 2026.