(1) No sponsor shall
require a person to pay the sponsor money or any other consideration as a condition
of awarding the person a prize, or as a condition of allowing the person to receive,
use, compete for, or obtain a prize or information about a prize.
(2) No sponsor shall represent that a person has won or unconditionally will
be the winner of a prize or use language that may lead a person to believe he or she
has won a prize, unless all of the following conditions are met:
(a) The person shall be given the prize without obligation;
(b) The person shall be notified at no expense to such person within fifteen
days of winning a prize; and
(c) The representation is not false, deceptive, or misleading.
(3) If a sponsor offers one or more items of the same or substantially the
same value to all or substantially all of the recipients of a prize notice, the sponsor
shall not:
(a) Represent that such items are prizes or that the process by which such
items are to be distributed is a sweepstakes or contest, or otherwise represent that
such process involves a distribution by chance; or
(b) Represent that the recipient is or has been specially selected unless it is
true.
(4) No sponsor shall represent that a person has been specially selected in
connection with a sweepstakes or contest unless it is true.
(5) No sponsor shall represent that a person may be or may become a winner
of a prize, characterize the person as a possible winner of a prize, or represent that
the person will, upon the satisfaction of some condition or the occurrence of some
event or other contingency, become the winner of a prize, unless each of the
following is clearly and conspicuously disclosed:
(a) The material conditions necessary to make the representation truthful
and not misleading, including but not limited to the conditions that must be
satisfied in order for the person to be determined as the winner. All such conditions
shall be:
(I) Presented in such a manner that they are an integral part of the
representation and not separated from the remainder of the representation by
intervening words, graphics, colors, or excessive blank space;
(II) Made in terms, syntax, and grammar that are as simple and easy to
understand as those used in the representation; and
(III) Presented in such a manner that they appear in the same type size and in
the same type face, color, style, and font as the remainder of the representation.
(b) The fact that the person has not yet won;
(c) The no purchase necessary message;
(d) The retail value of each prize;
(e) The estimated odds of receiving each prize pursuant to paragraph (c) of
subsection (6) of this section;
(f) The true name or names of the sponsor, the address of the sponsor's
actual principal place of business, and the address at which the sponsor may be
contacted;
(g) If receipt of a prize is subject to a restriction, a statement that a
restriction applies and a description of the restriction;
(h) The deadline for submission of an entry to be eligible to win each prize;
(i) If a sponsor represents that the person is or has been specially selected,
and if the representation is not prohibited under subsections (3) and (4) of this
section, then immediately adjacent to such representation, in the same type size
and boldness as the representation, a statement of the maximum number of
persons in the group or purported group of persons with this enhanced likelihood of
receiving a prize;
(j) The official rules for the sweepstakes or contest.
(6) Unless otherwise provided by subsection (5) of this section, the
information required by subsection (5) of this section shall be presented in the
following form:
(a) The information required by paragraphs (b) to (h) of subsection (5) of this
section may be presented either:
(I) Immediately adjacent to the first identification of the prize to which it
refers and in the same type size and boldness as the reference to the prize; or
(II) In a separate section of official rules with a section entitled consumer
disclosure, which title shall be printed in no less than twelve-point, bold-faced
type, which section shall contain only a description of the prize, and which text shall
be printed in no less than ten-point type.
(b) In addition to the other requirements of this subsection (6), the no
purchase necessary message shall be presented in the official rules and, if the
official rules do not appear thereon, on any device by which a person enters a
sweepstakes or contest or purchases any goods or services or pays any money in
connection with a sweepstakes or contest. The no purchase necessary message
included in the official rules shall be set out in a separate paragraph in the official
rules and be printed in capital letters in contrasting type face not smaller than the
largest type face used in the text of the official rules. If a person is required or
allowed to enter the sweepstakes or contest, or purchase any goods or services or
pay any money in connection with a sweepstakes or contest, through a telephone
call, the no purchase necessary message must be read to the person during the
telephone call prior to accepting the entry, purchase, or payment.
(c) The statement of the odds of receiving each prize shall include, for each
prize, the total number of prizes to be given away and the estimated odds of
winning each prize based upon the following formula: ____ [number of prizes] out
of _____ prize notices distributed.
(d) All dollar values shall be stated in Arabic numerals and be preceded by a
dollar sign.
(7) No sponsor shall subject sweepstakes or contest entries not
accompanied by an order for products or services to any disability or disadvantage
in the winner selection process to which an entry accompanied by an order for
products or services would not be subject.
(8) No sponsor shall represent that an entry in a sweepstakes or contest
accompanied by an order for products or services will be eligible to receive
additional prizes or be more likely to win than an entry not accompanied by an order
for products or services, or that an entry not accompanied by an order for products
or services will have a reduced chance of winning a prize in the sweepstakes or
contest.
(9) No sponsor shall represent 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 sweepstakes or contest more than one time.
(10) No sponsor shall represent 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.
(11) No sponsor shall represent that a prize notice is urgent or otherwise
convey an impression of urgency by use of description, narrative copy, phrasing on
a mailing 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 immediately adjacent to each
representation of urgency in the same type size and boldness as each
representation of urgency.
(12) No sponsor shall deliver, or cause to be delivered, a prize notice which is
in the form of, or a prize notice which includes, a document which simulates a bond,
check, or other negotiable instrument, unless that document contains a statement
that such document is nonnegotiable and has no cash value.
(13) No sponsor shall deliver, or cause to be delivered, a prize notice which:
(a) Simulates or falsely represents that it is a document authorized, issued,
or approved by any court, official, or agency of the United States or any state or by
any lawyer, law firm, or insurance or brokerage company; or
(b) Creates a false impression as to its source, authorization, or approval.
(14) No sponsor shall represent that a prize notice is being delivered by any
method other than bulk mail unless that is the case or otherwise misrepresent the
manner in which the prize notice is delivered.
(15) In the operation of a sweepstakes or contest, no sponsor shall:
(a) Misrepresent in any manner the likelihood or odds of winning any prize or
misrepresent in any manner the rules, terms, or conditions of participation in a
sweepstakes or contest;
(b) Fail to clearly and conspicuously disclose with all contest puzzles and
games all of the following in the rules:
(I) The number of rounds or levels which may be necessary to complete the
contest and determine winners;
(II) Whether future puzzles or games, if any, or tie breakers, if any, will be
significantly more difficult than the initial puzzle;
(III) The date or dates on or before which the contest will terminate and upon
which all prizes will be awarded;
(IV) The method of determining prizewinners if a tie remains after the last tie
breaker puzzle is completed; and
(V) All rules, regulations, terms, and conditions of the contest.
(16) The prohibited practices listed in this section are in addition to and do
not limit the types of unfair trade practices actionable at common law or under
other civil and criminal statutes of this state.
(17) No sponsor, requiring a person to respond in any manner to claim a prize,
shall require the person to purchase insurance; except that the sponsor is in no way
responsible for applicable state and federal taxes on the prize; and except that a
sponsor may require proof of health insurance in order to claim a prize for travel or
recreational activities. Such health insurance may not be acquired from the
sponsor.