Love v. Durastill of Richmond, Inc.

In this case, we consider whether a particular sales promotion program is a “pyramid promotional scheme” as defined in Code § 18.2-239(a).

Delores Love paid $5,000 to Durastill of Richmond, Inc. and Durastill of Virginia, Inc. (collectively Durastill) in return for certain contractual rights. First, Love became an “independent distributor” of water purification stills sold by Durastill; second, she was entitled to enter Durastill’s training program for distributors; and third, Love was to receive $1,250 for each new distributor she recruited to Durastill’s program. Upon paying $5,000 to…