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STATE EX REL. MILLER v. AMER. PRO. MARKETING

No. 85-141.

382 N.W.2d 117 (1986)

STATE of Iowa, ex rel. Thomas J. MILLER, Attorney General, Appellee, v. AMERICAN PROFESSIONAL MARKETING, INC.; American Professional Marketing, Inc.; Johnny Brown; Betty L. Brown; and Glenn J. Beadle, Appellants.

Supreme Court of Iowa.

February 19, 1986.

Attorney(s) appearing for the Case

F. Richard Lyford and Barbara G. Barrett, of Dickinson, Throckmorton, Parker, Mannheimer & Raife, Des Moines, for appellants.

Thomas J. Miller, Atty. Gen., and Richard L. Cleland and James M. Peters, Asst. Attys. Gen., for appellee.

Mark A. Critelli, of Comito & Capps, Des Moines, for amicus curiae Direct Selling Assn.

Considered en banc.

SCHULTZ, Justice.

Defendants appeal from a district court determination that their multilevel marketing programs are illegal referral sales plans. The court permanently enjoined defendants' sales practices in the state. In this appeal, defendants assert that their programs are neither pyramiding nor illegal referral merchandise sales plans banned by Iowa Code section 714.16(2). We agree with defendants' contention and reverse the trial court's ruling.

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