The legislature finds that pyramid schemes, chain letters, and related illegal schemes are enterprises:

     (1) That finance returns to participants through sums taken from newly attracted participants;

     (2) In which new participants are promised large returns for their investment or contribution; and

     (3) That involve unfair and deceptive sales tactics, including: Misrepresentations of sustainability, profitability and legality of the scheme, and false statements that the scheme is legal or approved by governmental agencies.

[2006 c 65 § 1.]