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Oregon Revised Statutes

Or. Rev. Stat. § 646.609 (2026)

“Pyramid club” and “investment” defined

✓ current as of May 2026
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      646.609 “Pyramid club” and “investment” defined. As used in ORS 646.608 (1)(r), “pyramid club” means a sales device whereby a person, upon condition that the person make an investment, is granted a license or right to solicit or recruit for economic gain one or more additional persons who are also granted such license or right upon condition of making an investment and who may further perpetuate the chain of persons who are granted such license or right upon such condition. “Pyramid club” also includes any such sales device which does not involve the sale or distribution of any real estate, goods or services, including but not limited to a chain letter scheme. A limitation as to the number of persons who may participate, or the presence of additional conditions affecting eligibility for such license or right to recruit or solicit or the receipt of economic gain therefrom, does not change the identity of the scheme as a pyramid club. As used herein, “investment” means any acquisition, for a consideration other than personal services, of property, tangible or intangible, and includes without limitation, franchises, business opportunities and services. It does not include sales demonstration equipment and materials furnished at cost for use in making sales and not for resale. For the purpose of ORS 646.608 (1)(r), any person who organizes or induces or attempts to induce membership in a pyramid club is acting in the course of the person’s business, vocation or occupation. [1973 c.513 §3; 1981 c.379 §1]

 

      646.610 [Repealed by 1953 c.391 §2]

Notes of Decisions
Cited in 2 cases (1 in the last 5 years), 2004–2025 · leading case: Nielsen v. Myers, 90 P.3d 628 (Or. Ct. App. 2004).
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Nielsen v. Myers, 90 P.3d 628 (Or. Ct. App. 2004). · cites it 11× “See ORS 646.609 (defining “pyramid club”). The trial court also permanently enjoined plaintiffs from becoming involved in pyramid clubs in the future.”
McCarrell v. RugsUSA, LLC (D. Or. 2025). “Thus, the Court accepts Plaintiff’s allegation that “Defendant’s list prices are not Defendant’s true prices,” and finds that Plaintiff states a plausible claim under ORS 646.609(1)(ee) and 646.885. C. Breach of Contract Defendant next argues that the “Complaint does not…”
— Or. Rev. Stat. § 646.609(1)(ee) — 1 case
McCarrell v. RugsUSA, LLC (D. Or. 2025). “Thus, the Court accepts Plaintiff’s allegation that “Defendant’s list prices are not Defendant’s true prices,” and finds that Plaintiff states a plausible claim under ORS 646.609(1)(ee) and 646.885. C. Breach of Contract Defendant next argues that the “Complaint does not…”
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