S.C. Code Ann. § 39-5-720: Definitions.

As used in this article:

(1) "Compensation" means the payment of money, a thing of value, or a benefit.

(2) "Consideration" means either the payment of money or the provision of a thing of value for the purchase of a product, good, service, or intangible property. Consideration does not include:

(a) the purchase of a product, furnished at cost, for use in making a sale, but not for resale, of the purchased product itself; or

(b) time and effort spent to pursue a sale or recruiting activity.

(3) "Pyramid promotional scheme" means a plan or operation in which an individual pays consideration for the right to receive compensation based primarily upon recruiting other individuals into the plan or operation instead of selling products or services to ultimate users for their use or consumption.

(4) "Ultimate users" are individuals who consume or use the products or services, whether or not they are participants in the plan or operation.