Commercial Law – General Regulatory Provisions

Referral Selling

SECTION 6-29-1

§ 6-29-1. Home solicitation referral selling.

No seller in a home solicitation sale or a cash sale as defined in § 6-28-2 shall offer to pay a commission or give a rebate or discount to the buyer in consideration of the buyer's giving to the seller the names of prospective purchasers or otherwise aiding the seller in making a sale to another person unless the seller actually delivers to the purchaser a chart showing the actual experience of purchasers for the three (3) calendar years ending prior to the contract under consideration, including the number of and monies paid to those who participated in the plan, and unless there shall be a separate, written agreement signed and dated by the buyer and also signed by the seller containing the following in ten-point (10) bold-face type or larger, directly above the space reserved in the agreement for the signature of the buyer:

(1) No purchase of goods or services between the parties to the sale has been induced by the promise of monies to be earned under this agreement;

(2) The purchase price of any goods or services in any transaction between the parties to the sale has not been increased in any way because of this agreement;

(3) No payments due under this agreement may be held up, credited, or set-off toward payment of any obligation between the parties except on written authorization specifically allowing that action; and

(4) No other representations or agreements, oral or written, have been made by the parties to the sale relating to the terms of this agreement.

History of Section.
(P.L. 1968, ch. 149, § 1; P.L. 2014, ch. 528, § 21.)