Section 7:28-d Charitable Sales Promotions.
I. Every charitable trust which agrees to permit a charitable sales promotion to be conducted by a commercial co-venturer on its behalf shall file with the attorney general a notice of such promotion prior to its commencement within this state. Such notice shall state the names of the charitable trust and commercial co-venturer, that they intend to conduct a charitable sales promotion, and the date such promotion is expected to commence.
II. Every charitable trust which agrees to permit a charitable sales promotion to be conducted on its behalf shall, prior to the commencement of the charitable sales promotion within this state, obtain a written agreement from the commercial co-venturer which shall be available to the attorney general upon request. The agreement shall be signed by an authorized representative of the charitable trust and the commercial co-venturer and it shall include, at a minimum, the following:
(a) The goods or services to be offered to the public.
(b) The geographic area where, and the starting and final date when, the offering shall be made.
(c) The manner in which the charitable trust's name shall be used, including the representation to be made to the public as to the actual or estimated dollar amount or percent per unit of goods or services purchased or used that shall benefit the charitable trust.
(d) If applicable, the maximum dollar amount that shall benefit the charitable trust.
(e) The estimated number of units of goods or services to be sold or used.
(f) A provision for a final accounting on a per unit basis to be given by the commercial co-venturer to the charitable trust and the date by which it shall be made.
(g) A statement that the charitable sales promotion is subject to the requirements of this subdivision.
(h) The date by, and the manner in which, the benefit shall be conferred on the charitable trust.
III. The final accounting for the charitable sales promotion is to be kept by the commercial co-venturer for 3 years after the final accounting date and shall be available to the attorney general upon request.
IV. The commercial co-venturer shall disclose in each advertisement for the charitable sales promotion the dollar amount or percent per unit of goods or services purchased or used that shall benefit the charitable trust or purpose. If the actual dollar amount or percent cannot reasonably be determined prior to the final date of the charitable sales promotion, the commercial co-venturer shall disclose an estimated dollar amount or percent. Any such estimate shall be reasonable and shall be based upon all of the relevant facts known to the commercial co-venturer and the charitable trust regarding the charitable sales promotion.
Source. 1987, 260:3, eff. July 19, 1987.