Tenn. Code Ann. § 47-18-1102: Knowingly establishing, promoting, or operating pyramid promotional scheme - Offense

(1) It is an offense for any person to knowingly establish, promote, or operate any pyramid promotional scheme in this state.

(2) A limitation as to the number of persons who may participate or the presence of additional conditions affecting eligibility for the opportunity to receive compensation under the plan does not change the identity of the plan as a pyramid promotional scheme nor is it a defense under this section.