§ 66-32-305 — Inducements - Disclosures

Tennessee § 66-32-305

• Jurisdiction: Tennessee
• Title: 66

Text

(a) It is unlawful for any person by any means, as part of an advertising program, to offer any item of value as an inducement to the recipient to visit a membership camping operator's campground, attend a sales presentation, or contact a salesperson, unless the person clearly discloses in writing in the offer, in readily understandable language, each of the following: (1) The name and street address of the membership camping operator; (2) A general statement that the advertising program is made by a membership camping operator and the purpose of any requested visit, including, but not limited to, the intent to offer a sales presentation, and that an attempt will be made to induce the person to incur a monetary obligation, including the amount of any monetary obligation; (3) A statement of the odds, in Arabic numerals, of receiving each item offered, plus a statement, in Arabic numerals, of the number of offers on which those odds are based, and a statement, if applicable, that those offers are not exclusive to the property within named; (4) The approximate verifiable retail value of each item offered, which means the price at which the person offering the item can substantiate that a substantial number of these items have been sold at retail by another person or, in the event such substantiation is unavailable, no more than three (3) times the amount actually paid by the sponsor or promoter for the item and a statement that the recipient shall be allowed to choose either the item offered or cash in an amount equal to the retail value of the item, as such value is represented within the written offer; and (5) All restrictions, qualifications, and other conditions that must be satisfied before the recipient is entitled to receive the item, including: (A) Any deadline by which the recipient must visit the campground, attend the sales presentation, or respond in order to receive the item; (B) The approximate duration of any normal sales presentation and tour; (C) Any other conditions, such as a minimum age qualification, a financial qualification, or a requirement that if the recipient is married both husband and wife must be present in order to receive the item; and (D) All other materials, rules, terms, and conditions of the offer or program. (b) It is unlawful to make receipt of an offered prize contingent upon consent by the individual winners to allow their names to be used for promotional purposes. (c) It is unlawful to use the names of individual winners for a promotional purpose in connection with a mailing to a third person before obtaining their express written or oral consent to such use. (d) It is unlawful for any person making an offer subject to subsection (a), or any employee or agent of the person, to offer any item if the person knows or has reason to know that the offered item will not be available in a sufficient quantity based on the reasonably anticipated response to the offer. (e) It is unlawful for any person making an offer subject to subsection (a), or any employee or agent of the person, to fail to provide any offered item or to fail to provide cash, if chosen by the recipient, in an amount equal to the retail value of the item, as such value is represented within the written offer, which any recipient who has responded to the offer is entitled to receive. The recipient shall be allowed to choose either the item offered or the cash. (f) (1) If the person making an offer subject to subsection (a) is unable to provide an offered item because of limitations of supply, quantity, or quality not reasonably foreseeable or controllable by the person making the offer and the recipient does not choose to accept cash in an amount equal to the retail value of the item, as such value is represented within the written offer, the person making the offer shall inform the recipient of the recipient's right to receive a rain check for the item offered, or shall inform the recipient of the recipient's right to at least one (1) of the following additional options: (A) The person making the offer will provide a like item of equivalent or greater verifiable retail value or a rain check for the item. This option must be offered if the offered item is not reasonably available; (B) The person making the offer will provide a substitute item of equivalent or greater verifiable retail value. (2) If a rain check is provided, the person making an offer subject to subsection (a) shall, within a reasonable time, and in no event more than one hundred twenty (120) days after the raincheck is provided, deliver the agreed item to the recipient's address without additional cost or obligation to the recipient, unless the item for which the rain check is provided remains unavailable because of limitations of supply, quantity, or quality not reasonably foreseeable or controllable by the person making the offer. If the item is unavailable for these reasons, the person shall, not more than thirty (30) days after the expiration of the one-hundred-twenty-day period, deliver a like item of equal or greater value. The recipient has thirty (30) days from receipt of the delivered item to return the item and request cash in an amount equal to the retail value as represented within the written offer or the retail value represented of any substitute item offered, whichever is greater. The person making the offer shall provide payment within ten (10) days from return of the item. (g) On the request of a recipient who has received or claims a right to receive any offered item, the person making an offer subject to subsection (a) shall show the recipient sufficient evidence verifying that the item provided matches the item randomly or otherwise selected for distribution to that recipient. (h) It is unlawful for any person making an offer subject to subsection (a), or any employee or agent of the person, to: (1) Misrepresent the size, quantity, or identity of any prize, gift, money, or other item of value offered; (2) Misrepresent in any material manner the odds of receiving any particular gift, prize, amount of money, or other item of value; (3) Label any offer a "notice of termination" or "notice of cancellation"; (4) Misrepresent, through omission or in any other material manner, the offer or program; (5) Represent or lead a person to believe that the person is or could be a winner if the person had not won or is not eligible to win; or (6) Represent or lead a person to believe that the person has been "selected" or is otherwise part of a select or special group when the person has not been selected or is not part of a select or special group.

Legislative History

Acts 1985, ch. 303, § 5; 1991, ch. 82, §§ 1-5; 1991, ch. 83, §§ 1-4; T.C.A., §47-18-405.