§ 42-61.1-3. Representation of eligibility to win or to receive a prize, gift, or item of value.
(a)(1) No person shall, in connection with the sale or lease or solicitation for sale or
lease of goods, property or service, represent that another person has a chance to
win or to receive a prize, gift, or item of value without clearly and conspicuously
disclosing on whose behalf the contest or promotion is conducted, as well as all material
conditions which a participant must satisfy. In an oral solicitation, all material
conditions shall be disclosed prior to requesting the consumer to enter into the sale
or lease.
(2) Additionally, in any written material covered by the section, each of the following
shall be clearly and prominently disclosed, either immediately adjacent to the first
identification of the prize, gift, or item of value to which it refers; or in a separate
section entitled "consumer disclosure� which title shall be printed in no less than
ten (10) point boldface type and which section shall contain only a description of
the prize, gift, or item of value and the disclosures outlined in subsections (a)(2)(i)
— (a)(2)(iii):
(i) The actual retail value of each item or prize, which for the purposes of this section
shall be:
(A) The price at which substantial sales of the item were made in the area in which the
offer was received within the last ninety (90) days; or
(B) The actual cost of the item of value, gift, or prize to the person on whose behalf
the contest or promotion is conducted plus no more than seven hundred percent (700%),
but in no case shall it exceed that person's good faith estimate of the appraised
retail value;
(ii) The actual number of each item, gift, or prize to be awarded; and
(iii) The odds of receiving each item, gift, or prize.
(b) All disclosures required by this chapter to be in writing shall comply with the following:
(1) All dollar values shall be stated in arabic numerals and be preceded by a dollar sign
($);
(2) The number of each item, gift, or prize to be awarded and the odds of receiving each
item, gift, or prize shall be stated in arabic numerals and shall be written in a
manner that is clear and understandable.
(c) It shall be unlawful to notify a person that the person will receive a gift, prize,
or item of value that has as a condition of receiving the gift, prize, or item of
value the requirement that the person pay any money, or purchase, lease, or rent any
goods or services, unless there shall have been clearly and conspicuously disclosed
the nature of the charges to be incurred, including, but not limited to, any shipping
charge and handling charges. This disclosure shall be given:
(1) On the face of any written materials; or
(2) Prior to requesting or inviting the person to enter into the sale or lease in any
oral notification.
(d) The provisions of this section shall not apply where to be eligible:
(1) Participants are asked only to complete and mail or deposit at a local retail commercial
establishment, an entry blank obtainable locally or by mail, or to call in their entry
by telephone; or
(2) Participants are never required to listen to a sales presentation and never requested
or required to pay any sum of money for any merchandise, service, or item of value.
(e) Nothing in this section shall preclude from liability any publisher, owner, agent,
or employee of a newspaper, periodical, radio station, or television station, who
has knowledge or reasonably should have known that the dissemination of any advertisement
or promotion governed by this section, violated the requirements of this section.