KRS 367.832: Pyramid distribution plan prohibited.

(1) It is hereby declared unlawful for any person to establish, promote, operate, or

participate in any pyramid distribution plan.

(2) A limitation as to the number of persons who may participate or the presence of

additional conditions affecting eligibility f or the opportunity to receive

compensation under the plan does not change the identity of the plan as a pyramid

distribution plan nor is it a defense under this section that a participant, on giving

consideration, obtains goods, services or intangible prop erty in addition to the right

to receive compensation.