ILCS » Chapter 815 · Act 505
Illinois Compiled Statutes

815 ILCS 505/2A (2026)

(1) The use or employment of any chain referral sales technique, plan, arrangement or agreement whereby the buyer is induced to purchase merchandise upon the seller's promise or representation that if buyer will furnish seller names of other prospective buyers or like or identical merchandise that seller will contact the named prospective buyers and buyer will receive a reduction in the purchase price by means of a cash rebate, commission, credit toward balance due or any other consideration, which rebate, commission, credit or other consideration is contingent upon seller's ability to sell like or identical merchandise to the named prospective buyers, is declared to be an unlawful practice within the meaning of this Act

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(815 ILCS 505/2A) (from Ch. 121 1/2, par. 262A)
    Sec. 2A. (1) The use or employment of any chain referral sales technique, plan, arrangement or agreement whereby the buyer is induced to purchase merchandise upon the seller's promise or representation that if buyer will furnish seller names of other prospective buyers or like or identical merchandise that seller will contact the named prospective buyers and buyer will receive a reduction in the purchase price by means of a cash rebate, commission, credit toward balance due or any other consideration, which rebate, commission, credit or other consideration is contingent upon seller's ability to sell like or identical merchandise to the named prospective buyers, is declared to be an unlawful practice within the meaning of this Act.
    (2) It is an unlawful practice within the meaning of this Act for any person, by himself or through others, to sell, offer to sell, or attempt to sell the right to participate in a pyramid sales scheme.
(Source: P.A. 83-808.)

    
Notes of Decisions
Cited in 5 cases, 1993–2016 · leading case: Morrison v. YTB Int'l, Inc., 649 F.3d 533 (7th Cir. 2011).
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Morrison v. YTB Int'l, Inc., 649 F.3d 533 (7th Cir. 2011). “That statute forbids pyramid schemes, 815 ILCS 505/2A(2), which it defines as any venture in which a participant’s profit “is primarily based upon the inducement of additional persons .”
Morrison v. YTB Int'l, Inc., 641 F. Supp. 2d 768 (S.D. Ill. 2009). · cites it 4× “Count I of the Consolidated Complaint alleges a violation of 815 ILCS 505/2A(2) in that Defendants’ business constitutes an illegal pyramid sales scheme as defined by 815 ILCS 505/l(g).”
Scentura Creations, Inc. v. Long, 756 N.E.2d 451 (Ill. App. Ct. 2d Dist. 2001). “” 815 ILCS 505/2A(l) (West 2000). While defendant contends that the consignment contract falls squarely within the protection of section 2A of the Act, plaintiff contends that the contract cannot be construed as a chain referral agreement or pyramid sales scheme because…”
Woerner v. Bankers Life & Cas. Co., 216 F. Supp. 3d 924 (N.D. Ill. 2016). “Since Woerner’s claims for breach of contract and breach of the covenant of good faith and fair dealing are coextensive, the latter is dismissed. III. Fraud Woerner alleges that Bankers Life violates the ban on “pyramid schemes” contained in the Illinois Consumer Fraud and…”
People v. Knop, 619 N.E.2d 203 (Ill. App. Ct. 2d Dist. 1993). “Defendant notes that in Unimax the appellate court held only that there was a question of fact whether the Unimax system was an illegal pyramid sales scheme as defined by the Consumer Fraud and Deceptive Business Practices Act (see 815 ILCS 505/2A (West 1992)). Moreover,…”
815 ILCS 505/2A(2): 3 cases
Morrison v. YTB Int'l, Inc., 649 F.3d 533 (7th Cir. 2011). “That statute forbids pyramid schemes, 815 ILCS 505/2A(2), which it defines as any venture in which a participant’s profit “is primarily based upon the inducement of additional persons .”
Morrison v. YTB Int'l, Inc., 641 F. Supp. 2d 768 (S.D. Ill. 2009). “Count I of the Consolidated Complaint alleges a violation of 815 ILCS 505/2A(2) in that Defendants’ business constitutes an illegal pyramid sales scheme as defined by 815 ILCS 505/l(g).”
Woerner v. Bankers Life & Cas. Co., 216 F. Supp. 3d 924 (N.D. Ill. 2016). “Since Woerner’s claims for breach of contract and breach of the covenant of good faith and fair dealing are coextensive, the latter is dismissed. III. Fraud Woerner alleges that Bankers Life violates the ban on “pyramid schemes” contained in the Illinois Consumer Fraud and…”
815 ILCS 505/2A(l): 2 cases
Morrison v. YTB Int'l, Inc., 641 F. Supp. 2d 768 (S.D. Ill. 2009). “Count I of the Consolidated Complaint alleges a violation of 815 ILCS 505/2A(2) in that Defendants’ business constitutes an illegal pyramid sales scheme as defined by 815 ILCS 505/l(g).”
Scentura Creations, Inc. v. Long, 756 N.E.2d 451 (Ill. App. Ct. 2d Dist. 2001). “” 815 ILCS 505/2A(l) (West 2000). While defendant contends that the consignment contract falls squarely within the protection of section 2A of the Act, plaintiff contends that the contract cannot be construed as a chain referral agreement or pyramid sales scheme because…”
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