California statute
Cal. Penal Code § 327
Current through 2025–2026 Regular Session (leginfo weekly dump, 2026-07-12)
Part of Chapter 9: Lotteries, California Penal Code.
Full text of Cal. Penal Code § 327
Statutory text current through the 2025–2026 Regular Session (leginfo weekly dump, 2026-07-12). This publication reproduces the official statutory text; it is not the official statutes of the State of California.
Every person who contrives, prepares, sets up, proposes, or operates any endless chain is guilty of a public offense, and is punishable by imprisonment in the county jail not exceeding one year or in state prison for 16 months, two, or three years. As used in this section, an “endless chain” means any scheme for the disposal or distribution of property whereby a participant pays a valuable consideration for the chance to receive compensation for introducing one or more additional persons into participation in the scheme or for the chance to receive compensation when a person introduced by the participant introduces a new participant. Compensation, as used in this section, does not mean or include payment based upon sales made to persons who are not participants in the scheme and who are not purchasing in order to participate in the scheme.
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