referral sales contract

A dual agreement consisting of an agreement by the consumer to purchase goods or services (usu. at an inflated price) and an agreement by the seller to compensate the consumer for each customer (or potential customer) referred to the seller.

— Also termed referral sales agreement. Cf. PYRAMID SCHEME. [Cases: Consumer Protection 12. C.J.S. Credit Reporting Agencies; Consumer Protection §§ 56–58.]

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