§ 42-61.1-3 Representation of eligibilityto win or to receive a prize, gift, or item of value. – (a) No person shall, in connection with the sale or lease or solicitation forsale or lease of goods, property or service, represent that another person hasa chance to win or to receive a prize, gift, or item of value without clearlyand conspicuously disclosing on whose behalf the contest or promotion isconducted, as well as all material conditions which a participant must satisfy.In an oral solicitation, all material conditions shall be disclosed prior torequesting the consumer to enter into the sale or lease. (2) Additionally, inany written material covered by the section, each of the following shall beclearly and prominently disclosed, either immediately adjacent to the firstidentification of the prize, gift, or item of value to which it refers; or in aseparate section entitled "consumer disclosure" which title shall be printed inno less than ten (10) point bold face type and which section shall contain onlya description of the prize, gift, or item of value and the disclosures outlinedin subdivisions (a)(2)(i) – (a)(2)(iii):
(i) The actual retail value of each item or prize, which forthe purposes of this section shall be:
(A) The price at which substantial sales of the item weremade 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 tothe person on whose behalf the contest or promotion is conducted plus no morethan seven hundred percent (700%), but in no case shall it exceed that person'sgood faith estimate of the appraised retail value;
(ii) The actual number of each item, gift, or prize to beawarded; and
(iii) The odds of receiving each item, gift, or prize.
(b) All disclosures required by this chapter to be in writingshall comply with the following:
(1) All dollar values shall be stated in arabic numerals andbe preceded by a dollar sign ($);
(2) The number of each item, gift or prize to be awarded andthe odds of receiving each item, gift or prize shall be stated in arabicnumerals and shall be written in a manner which is clear and understandable.
(c) It shall be unlawful to notify a person that he or shewill receive a gift, prize, or item of value that has as a condition ofreceiving the gift, prize, or item of value the requirement that the person payany money, or purchase, lease, or rent any goods or services, unless thereshall have been clearly and conspicuously disclosed the nature of the chargesto be incurred, including, but not limited to, any shipping charge and handlingcharges. This disclosure shall be given:
(1) On the face of any written materials; or
(2) Prior to requesting or inviting the person to enter intothe sale or lease in any oral notification.
(d) The provisions of this section shall not apply where tobe eligible:
(1) Participants are asked only to complete and mail ordeposit at a local retail commercial establishment, an entry blank obtainablelocally or by mail, or to call in their entry by telephone; or
(2) Participants are never required to listen to a salespresentation and never requested or required to pay any sum of money for anymerchandise, service, or item of value.
(e) Nothing in this section shall preclude from liability anypublisher, owner, agent, or employee of a newspaper, periodical, radio station,or television station, who has knowledge or reasonably should have known thatthe dissemination of any advertisement or promotion governed by this section,violated the requirements of this section.
§ 42-61.1-3 Representation of eligibilityto win or to receive a prize, gift, or item of value. – (a) No person shall, in connection with the sale or lease or solicitation forsale or lease of goods, property or service, represent that another person hasa chance to win or to receive a prize, gift, or item of value without clearlyand conspicuously disclosing on whose behalf the contest or promotion isconducted, as well as all material conditions which a participant must satisfy.In an oral solicitation, all material conditions shall be disclosed prior torequesting the consumer to enter into the sale or lease. (2) Additionally, inany written material covered by the section, each of the following shall beclearly and prominently disclosed, either immediately adjacent to the firstidentification of the prize, gift, or item of value to which it refers; or in aseparate section entitled "consumer disclosure" which title shall be printed inno less than ten (10) point bold face type and which section shall contain onlya description of the prize, gift, or item of value and the disclosures outlinedin subdivisions (a)(2)(i) – (a)(2)(iii):
(i) The actual retail value of each item or prize, which forthe purposes of this section shall be:
(A) The price at which substantial sales of the item weremade 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 tothe person on whose behalf the contest or promotion is conducted plus no morethan seven hundred percent (700%), but in no case shall it exceed that person'sgood faith estimate of the appraised retail value;
(ii) The actual number of each item, gift, or prize to beawarded; and
(iii) The odds of receiving each item, gift, or prize.
(b) All disclosures required by this chapter to be in writingshall comply with the following:
(1) All dollar values shall be stated in arabic numerals andbe preceded by a dollar sign ($);
(2) The number of each item, gift or prize to be awarded andthe odds of receiving each item, gift or prize shall be stated in arabicnumerals and shall be written in a manner which is clear and understandable.
(c) It shall be unlawful to notify a person that he or shewill receive a gift, prize, or item of value that has as a condition ofreceiving the gift, prize, or item of value the requirement that the person payany money, or purchase, lease, or rent any goods or services, unless thereshall have been clearly and conspicuously disclosed the nature of the chargesto be incurred, including, but not limited to, any shipping charge and handlingcharges. This disclosure shall be given:
(1) On the face of any written materials; or
(2) Prior to requesting or inviting the person to enter intothe sale or lease in any oral notification.
(d) The provisions of this section shall not apply where tobe eligible:
(1) Participants are asked only to complete and mail ordeposit at a local retail commercial establishment, an entry blank obtainablelocally or by mail, or to call in their entry by telephone; or
(2) Participants are never required to listen to a salespresentation and never requested or required to pay any sum of money for anymerchandise, service, or item of value.
(e) Nothing in this section shall preclude from liability anypublisher, owner, agent, or employee of a newspaper, periodical, radio station,or television station, who has knowledge or reasonably should have known thatthe dissemination of any advertisement or promotion governed by this section,violated the requirements of this section.
§ 42-61.1-3 Representation of eligibilityto win or to receive a prize, gift, or item of value. – (a) No person shall, in connection with the sale or lease or solicitation forsale or lease of goods, property or service, represent that another person hasa chance to win or to receive a prize, gift, or item of value without clearlyand conspicuously disclosing on whose behalf the contest or promotion isconducted, as well as all material conditions which a participant must satisfy.In an oral solicitation, all material conditions shall be disclosed prior torequesting the consumer to enter into the sale or lease. (2) Additionally, inany written material covered by the section, each of the following shall beclearly and prominently disclosed, either immediately adjacent to the firstidentification of the prize, gift, or item of value to which it refers; or in aseparate section entitled "consumer disclosure" which title shall be printed inno less than ten (10) point bold face type and which section shall contain onlya description of the prize, gift, or item of value and the disclosures outlinedin subdivisions (a)(2)(i) – (a)(2)(iii):
(i) The actual retail value of each item or prize, which forthe purposes of this section shall be:
(A) The price at which substantial sales of the item weremade 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 tothe person on whose behalf the contest or promotion is conducted plus no morethan seven hundred percent (700%), but in no case shall it exceed that person'sgood faith estimate of the appraised retail value;
(ii) The actual number of each item, gift, or prize to beawarded; and
(iii) The odds of receiving each item, gift, or prize.
(b) All disclosures required by this chapter to be in writingshall comply with the following:
(1) All dollar values shall be stated in arabic numerals andbe preceded by a dollar sign ($);
(2) The number of each item, gift or prize to be awarded andthe odds of receiving each item, gift or prize shall be stated in arabicnumerals and shall be written in a manner which is clear and understandable.
(c) It shall be unlawful to notify a person that he or shewill receive a gift, prize, or item of value that has as a condition ofreceiving the gift, prize, or item of value the requirement that the person payany money, or purchase, lease, or rent any goods or services, unless thereshall have been clearly and conspicuously disclosed the nature of the chargesto be incurred, including, but not limited to, any shipping charge and handlingcharges. This disclosure shall be given:
(1) On the face of any written materials; or
(2) Prior to requesting or inviting the person to enter intothe sale or lease in any oral notification.
(d) The provisions of this section shall not apply where tobe eligible:
(1) Participants are asked only to complete and mail ordeposit at a local retail commercial establishment, an entry blank obtainablelocally or by mail, or to call in their entry by telephone; or
(2) Participants are never required to listen to a salespresentation and never requested or required to pay any sum of money for anymerchandise, service, or item of value.
(e) Nothing in this section shall preclude from liability anypublisher, owner, agent, or employee of a newspaper, periodical, radio station,or television station, who has knowledge or reasonably should have known thatthe dissemination of any advertisement or promotion governed by this section,violated the requirements of this section.
