Definition: Seller Assisted Marketing Plans (SAMPs) are types of business opportunities regulated by California law and includes multi-level network marketing business models.
In 1978, California Civil Code Section 1812.200 et seq., (the "Seller Assisted Marketing Plan Act") was enacted to protect consumers. The law requires SAMPs to register with the state's attorney general and "to provide significant disclosure statements to potential buyers prior to signing any contracts, and to provide the buyer specific contractual rights after a purchase has been made."
Any California business opportunity that requires an investment (or purchase) of $500 to $50,000 to participate, must comply with the Seller Assisted Marketing Plan Act.
For more information, read the California Attorney General's Office: Seller Assisted Marketing Plans.