; and (2) does not include inventory that has been clearly described by a plan or operation to a participant prior to purchase as discounted, seasonal, a special promotion item, or not subject to the plan or operation’s inventory repurchase program. Inventory means both goods and services, including company-produced promotional material, sales aids, and sales kits that a plan or operation requires participants to purchase. Inventory loading means a practice in which a plan or operation requires or encourages its participants to purchase inventory in an amount exceeding that which the participant can reasonably expect to use, consume, or resell to ultimate users, and that is not subject to a bona fide repurchase agreement. Participant means a person who joins a plan or operation. Pyramid promotional scheme means any plan or operation in which individuals pay consideration for the right to receive compensation that is based upon recruiting other individuals into the plan or operation rather than primarily related to the sale of products or services to ultimate users. Ultimate user means, with respect to a product or service sold by a plan or operation, an individual who consumes or uses the product or service, whether or not the individual is a participant in the plan or operation. . 4. Limitations (a) Other violations of Federal law Nothing in this Act or the amendments made by this Act shall be construed to limit the authority of any Federal official from proceeding against pyramid promotional schemes (as defined in section 4 of the Federal Trade Commission Act ( 15 U.S.C. 44 )) for other violations of Federal law, including the Federal Trade Commission Act. (b) State law Nothing in this Act or the amendments made by this Act prohibits an authorized State official from proceeding in a State court of competent jurisdiction on the basis of an alleged violation of any civil or criminal statute of such State.