The Louisiana Court of Appeals held that the Holiday Magic distribution program was not an "endless chain" under the provisions of state law. State statute prohibited marketing programs that consisted of the sale of merchandise intended only for subsequent sale, and not eventual use. Holiday Magic was not in violation of the statute because the program's end distributers did not have the right to sell further distributorships, only cosmetics. This made the program acceptable under state law.
Full case and case summary are available at: http://www.mlmlegal.com/legal-cases/HolidayMagicInc_v_Louisiana.php
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