P.R. Laws tit. 10, § 997a
No multi-level distribution company may, by itself or through dealers, agents or participants, carry out the following activities in the Commonwealth of Puerto Rico:
(a) Operate or directly or indirectly participate in the operation of any marketing program in which the benefits of the participants depend primarily on the continuous and successive enlistment of other participants and where the distribution and/or sale of properties or services is not required as a prerequisite to obtain said benefits.
(b) Offer to pay, pay or authorize the payment of benefits to its dealers, agents or participants in consideration only for the search and enlistment of new participants.
(c) Offer to pay, pay or authorize the payment of benefits to its dealers, agents or participants unless said persons exercise actual control and effective supervision in the distribution, sale, delivery or remittance of the merchandise or services to an ultimate consumer.
(d) Offer to pay, pay or authorize the payment of benefits to its dealers, agents or participants when such payment depends or is caused to depend on any aleatory or lucky element that prevails over the ability or judgment of said persons; or when such ability or judgment does not influence in any degree the obtainment of the benefits to be received by said persons, or when the dealer, agent or participant does not have a sufficient degree of control over the operations performed as to substantially affect the benefits to be received by him.
History —June 5, 1973, No. 96, p. 409, § 2.