940 CMR 3.06
Referral Schemes
No plan or scheme of inducing purchases, or entering into obligations by representations and
promises such as the following, or conditioned thereon, shall be used:
(1) That the seller would pay to each buyer certain money, credit or anything of value for each
of any number or of a certain number of prospective buyers referred or recommended by each
buyer, or for each such prospective customer so referred who becomes a buyer, and to whom the
same representations and promises would be made, and
(2) That the buyers' purchases may thus be free or paid off in whole or in part by such money,
credit, thing of value, and/or
(3) Concealing or disguising the obligation or contract involved or falsely representing that the
plan does not involve any obligation or contract.