940 CMR, § 3.06

Current through Register 1536, December 6, 2024

Section 3.06 - Referral Schemes

No plan or scheme of inducing purchases, or entering into obligations by representations and promises such as the following, or conditioned thereon, shall be used:

(1) That the seller would pay to each buyer certain money, credit or anything of value for each of any number or of a certain number of prospective buyers referred or recommended by each buyer, or for each such prospective customer so referred who becomes a buyer, and to whom the same representations and promises would be made, and

(2) That the buyers' purchases may thus be free or paid off in whole or in part by such money, credit, thing of value, and/or

(3) Concealing or disguising the obligation or contract involved or falsely representing that the plan does not involve any obligation or contract.

940 CMR, § 3.06