Ind. Code ch. 24-13-5

Ind. Code ch. 24-13-5
in effect

Ind. Code § 24-13-5-1 Circumstances under which this article may not be construed to prohibit a plan or operation as a pyramid promotional scheme

Sec. 1. This article may not be construed to prohibit a plan or operation, or to define a plan or operation as a pyramid promotional scheme, based on the fact that participants in the plan or operation give consideration in return for the right to receive compensation based upon purchases of goods, services, or intangible property by participants for personal use, consumption, or resale if both of the following conditions are satisfied: (1) The plan or operation does not promote or induce inventory loading. (2) The plan or operation implements an appropriate inventory repurchase program. As added by P.L.105-2017, SEC.3.

Ind. Code § 24-13-5-2 Required disclosures about appropriate inventory repurchase programs

Sec. 2. An entity must clearly describe an appropriate inventory repurchase program in its recruiting literature, sales manual, or contracts with independent salespersons. The recruiting literature, sales manual, or contract must disclose any inventory that is not eligible for repurchase under the program. As added by P.L.105-2017, SEC.3.

Ind. Code § 24-13-5-3 Inventory exempted from appropriate inventory repurchase programs

Sec. 3. An appropriate inventory repurchase program is not required to apply to inventory that: (1) is no longer within the inventory's commercially reasonable use or shelf life period; or (2) has been used or opened. As added by P.L.105-2017, SEC.3.

Ind. Code § 24-13-5-4 Required disclosure of inventory exempted from appropriate inventory repurchase programs

Sec. 4. An entity must clearly describe to a salesperson, prior to purchase, inventory that is excluded from the entity's appropriate inventory repurchase program as seasonal, discontinued, or special promotion products not subject to the entity's appropriate inventory repurchase program. As added by P.L.105-2017, SEC.3.

Ind. Code § 24-13-5-5 Burden of proof

Sec. 5. Notwithstanding section 1 of this chapter, the burden of showing that a participant or other person derives compensation primarily from the sale and consumption of goods, services, or intangible property lies with the plan or operation or a person involved with the plan or operation. As added by P.L.105-2017, SEC.3.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/24Fetched: 10/17/2026