State Ex Rel. Miller v. American Professional Marketing, Inc.

SCHULTZ, Justice.

Defendants appeal from a district court determination that their multilevel marketing programs are illegal referral sales plans. The court permanently enjoined defendants’ sales practices in the state. In this appeal, defendants assert that their programs are neither pyramiding nor illegal referral merchandise sales plans banned by Iowa Code section 714.16(2). We agree with defendants’ contention and reverse the trial court’s ruling.

The attorney general commenced this action on behalf of the State against two corporations and its officers. Although the two corporations, one…