§ 53-11-02 — Disclosures required

1. A sponsor may not require a person to pay the sponsor money as a condition of
awarding the person a prize, or as a condition of allowing the person to receive, use,
compete for, or obtain information about a prize. A sponsor may not use a solicitation
that creates the reasonable impression that a payment is required, unless the sponsor
first has delivered to the person written prize notice containing the following
information:
a. The true name or names of the sponsor and the address of the sponsor's actual
principal place of business;
b. The retail value of each prize the person receiving the notice has been selected
to receive or may be eligible to receive;
c. A statement of the person's odds of receiving each prize identified in the notice;
d. Any requirement that the person pay shipping or handling fees or any other
charges to obtain or use a prize, including the nature and amount of the charges;
e. If receipt of the prize is subject to a restriction, a statement that a restriction
applies, and a description of the restriction;
f. Any limitation on eligibility; and
g. If a sponsor represents that the person is a "winner", is a "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, the written prize notice
must contain a statement of the maximum number of persons in the group or
purported group with this enhanced likelihood of receiving a prize.
2. The information required by subsection 1 must be presented in the following form:
a. The retail value and the statement of odds required must be stated in immediate
proximity to each identification of a prize on the written notice and must be in the
same size and boldness of type as the reference to the prize. The statement of
odds must include, for each prize, the total number of prizes to be given away
and the total number of written prize notices to be distributed. The number of
prizes and written prize notices must be stated in Arabic numerals. The statement
of odds must be in the following form:
___________ (number of prizes) out of__________ notices distributed.
b. If a person is required to pay a shipping or handling fee or any other charge to
obtain a prize, to be eligible to obtain a prize, or participate in a contest, the
following statement must appear in immediate proximity to each listing of the
prize in the written prize notice, in not less than ten-point boldface type: YOU
MUST PAY $______ TO RECEIVE THIS ITEM or YOU MUST PAY $______ TO
COMPETE FOR THIS ITEM, whichever is applicable.

c. The statement required under subdivision g of subsection 1 must appear in
immediate proximity to each representation that the person is among a group of
persons with an enhanced likelihood of receiving a prize and must be in the same
size and boldness of type as the representation.