§481B-1.6 
Offers of gifts or prizes; unlawful.  (a)  It shall be an unlawful practice under this chapter for any person
to enforce or attempt to enforce an agreement to purchase, lease, or rent a
consumer product if the offer to sell, lease, or rent was conducted in a manner
not in compliance with the requirements of this chapter.



(b)  It
shall be an unlawful practice under this chapter for any person to offer a
gift, prize, or award by means of written notice sent through the mail or by
telephone with the intent to sell, lease, or rent a consumer product, or to
initiate the sale, lease, or rental of a consumer product when, at the time of
the offer, the consumer product and all the material terms of the sale, lease,
or rental transaction, including the price, handling, shipping, delivery, or
any other fee, are not clearly and conspicuously disclosed.



(c)  It
shall be an unlawful practice for any person to offer a gift, prize, or award
by means of written notice sent through the mail or by telephone with the
intent to receive a payment of any money when, at the time of the offer, all of
the material terms of the transaction, including handling, shipping, delivery,
or any other fee, are not clearly and conspicuously disclosed and the consumer
is requested to:



(1)  Further the
transaction by calling a 900 number or "pay per call"; or



(2)  Send payment
of any money to receive or redeem the prize.



(d)  Any
offer of a prize made by means of written notice sent through the mail or by
telephone shall include:



(1)  Information
on the odds of being able to receive the prize or if the odds are not
calculable in advance, the factors used in calculating the odds;



(2)  A statement
that no purchase or payment is required to win a prize or to participate in a
prize promotion; and



(3)  Instructions
on how to participate without purchase or payment including an address or
toll-free telephone number to which a consumer may write or call for
information on how to participate.



(e)  It
shall be an unlawful practice and a violation of this chapter for any person,
in any contest or sweepstakes in which the winning entry or entries are to be
determined by a drawing or some other method based on an element of chance to:



(1)  Promote a contest or sweepstakes in which some or
all of the prizes may not be awarded, or to fail to award all prizes or awards
offered, unless the person makes the following disclosures to each offeree in
writing and in a conspicuous manner prior to the acceptance of the offeree's
entry:



(A)  That some or all of the prizes may not be
awarded; and



(B)  The date or dates on which a determination of
winners will be made; or



(2)  Offer a prize of real property unless the offeror
files and maintains with the director of commerce and consumer affairs a bond
in a sum not less than $10,000, executed by the offeror, and naming the
director as the obligee and a surety company authorized to do business in the
State as surety.  The bond shall be continuous in form and conditioned upon the
award of the real property to an eligible participant.  The bond shall run to
the State for the benefit of any person who failed to receive the real property
due to the failure of the offeror to award the real property pursuant to the
terms of the offer.  The surety may cancel the bond by giving sixty days'
notice in writing to the director of commerce and consumer affairs.  Upon
cancellation or expiration of the bond, the surety shall remain liable for any
claims against the bond for a period of one year; provided that the claim arose
while the bond was in effect and the director of commerce and consumer affairs
notifies the surety of any claims within ninety days of discovery of the claim.
[L 1996, c 64, §1; am L 1999, c 239, §1; am L 2008, c 19, §12]