§ 4-102-105 — Prohibited practices

Arkansas § 4-102-105

• Jurisdiction: Arkansas
• Title: 4

Text

A sponsor shall not do any of the following: (1) Offer a prize to any person except in accordance with the requirements of this chapter; (2) (A) Deliver a written prize notice, or an envelope containing a written prize notice that contains language or is designed in a manner that would have the tendency or capacity to mislead intended recipients as to the source of the written prize notice. (B) This prohibition includes, but is not limited to, a written prize notice or envelope which indicates that the notice or envelope originates from a government agency, public utility, insurance company, consumer reporting agency, debt collector, or law firm, unless the written prize notice or envelope originates from that source; (3) Represent directly or by implication that the number of persons eligible for the prize is limited or that a person has been selected to receive a particular prize unless the representation is true; (4) Represent that a person is a winner or finalist, has been specially selected, is in first place, or is otherwise among a limited group of persons with an enhanced likelihood of receiving a prize, or that a person is entering a contest, sweepstakes, drawing, or other competitive enterprise from which a single winner or select group of winners will receive a prize, when in fact the enterprise is a promotional scheme designed to make contact with prospective customers and all or a substantial number of those receiving the notice are awarded the same prize; (5) (A) Represent directly or by implication that a person will have an increased chance of receiving a prize by making multiple or duplicate purchases, payments, or donations, or by entering a game, drawing, sweepstakes, or other contest more than one (1) time, unless the representation is true. (B) A sponsor is deemed to have made such representation if the sponsor delivers one (1) or more prize notices to a person after the person has already made a purchase, payment, or donation to the sponsor for the same promotion, or has already entered the same game, drawing, sweepstakes, or other contest, unless the sponsor can demonstrate a bona fide error even though the sponsor has implemented procedures reasonably designed to prevent such duplication; (6) Represent directly or by implication that a person is being notified a second or final time of the opportunity to receive or compete for a prize unless the representation is true; (7) Represent directly or by implication that a prize notice is urgent, or otherwise convey an impression of the urgency by use of description, narrative copy, phrasing on an envelope, or similar method unless there is a limited time period in which the recipient must take some action to claim or be eligible to receive a prize, and the date by which such action is required appears in immediate proximity to each representation of urgency and in the same type size and boldness as each representation of urgency; (8) (A) Knowingly sell, rent, exchange, transfer, or otherwise furnish to or purchase from other persons, financial data regarding Arkansans disclosed in connection with a prize promotion not in compliance with this chapter. (B) For purposes of this chapter, financial data includes credit card numbers, bank account numbers, other payment device numbers, and dollars spent on prize promotions which are not in compliance with this chapter; or (9) Request an individual to disclose the individual's phone number, age, birthdate, credit card ownership, or financial data in connection with a prize promotion which is not in compliance with this chapter.

Legislative History

Acts 1995, No. 736, § 7.