53-11 Contest Prize Notices
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<![CDATA[CHAPTER 53-11CONTEST PRIZE NOTICES53-11-01. Definitions. As used in this chapter, unless the context otherwise requires:1."Prize" means an item or service of value that is offered or awarded to a participant<br>in a real or purported contest, competition, sweepstakes, puzzle, drawing, scheme,<br>plan, or other selection process.2."Retail value" of a prize means:a.A price at which the sponsor can substantiate that a substantial number of the<br>prizes have been sold to the public in this state during the preceding year; orb.If the sponsor is unable to satisfy the requirement in subdivision a, then no<br>more than one and one-half times the amount the sponsor paid or would pay<br>for the prize in a bona fide purchase from an unaffiliated seller.3."Sponsor" means a person that requires another person in this state to pay money<br>as a condition of awarding the person a prize, or as a condition of allowing the<br>person to receive, use, compete for, or obtain information about a prize, or that<br>creates the reasonable impression that such a payment is required.53-11-02. Disclosures required.1.A sponsor may not require a person to pay the sponsor money as a condition of<br>awarding the person a prize, or as a condition of allowing the person to receive, use,<br>compete for, or obtain information about a prize.A sponsor may not use asolicitation that creates the reasonable impression that a payment is required, unless<br>the sponsor first has delivered to the person written prize notice containing the<br>following information:a.The true name or names of the sponsor and the address of the sponsor's<br>actual principal place of business;b.The retail value of each prize the person receiving the notice has been selected<br>to receive or may be eligible to receive;c.A statement of the person's odds of receiving each prize identified in the notice;d.Any requirement that the person pay shipping or handling fees or any other<br>charges to obtain or use a prize, including the nature and amount of the<br>charges;e.If receipt of the prize is subject to a restriction, a statement that a restriction<br>applies, and a description of the restriction;f.Any limitation on eligibility; andg.If a sponsor represents that the person is a "winner", is a "finalist", has been<br>"specially selected", is in "first place", or is otherwise among a limited group of<br>persons with an enhanced likelihood of receiving a prize, the written prize<br>notice must contain a statement of the maximum number of persons in the<br>group or purported group with this enhanced likelihood of receiving a prize.2.The information required by subsection 1 must be presented in the following form:Page No. 1a.The retail value and the statement of odds required must be stated in<br>immediate proximity to each identification of a prize on the written notice and<br>must be in the same size and boldness of type as the reference to the prize.<br>The statement of odds must include, for each prize, the total number of prizes<br>to be given away and the total number of written prize notices to be distributed.<br>The number of prizes and written prize notices must be stated in Arabic<br>numerals. The statement of odds must be in the following form:___________ (number of prizes) out of__________ notices distributed.b.If a person is required to pay a shipping or handling fee or any other charge to<br>obtain a prize, to be eligible to obtain a prize, or participate in a contest, the<br>following statement must appear in immediate proximity to each listing of the<br>prize in the written prize notice, in not less than ten-point boldface type: YOU<br>MUST PAY $______ TO RECEIVE THIS ITEM or YOU MUST PAY $______<br>TO COMPETE FOR THIS ITEM, whichever is applicable.c.The statement required under subdivision g of subsection 1 must appear in<br>immediate proximity to each representation that the person is among a group of<br>persons with an enhanced likelihood of receiving a prize and must be in the<br>same size and boldness of type as the representation.53-11-03.Prize award required.No later than thirty days after making therepresentation, a sponsor who represents to a person that the person has been awarded a prize<br>shall provide the person with the prize, or with a voucher, certificate, or other document giving the<br>person the unconditional right to receive the prize, or provide the person with either of the<br>following items selected by the person:1.Any other prize listed in the written prize notice that is available and that is of equal<br>or greater value; or2.The retail value of the prize, as stated in the written notice, in the form of cash, a<br>money order, or a certified check.53-11-04. Exemptions.1.This chapter does not create liability for acts by the publisher, owner, agent, or<br>employee of an advertising agency, a newspaper, periodical, radio station, television<br>station, cable television system, or other advertising medium arising out of the<br>publication or dissemination of a solicitation, notice, or promotion governed by this<br>chapter, unless the publisher, owner, agent, or employee had knowledge that the<br>solicitation, notice, or promotion violated the requirements of this chapter, or had a<br>financial interest in the solicitation, notice, or promotion.2.This chapter does not apply to solicitations or representations, in connection with:a.The sale or purchase of books, recordings, videocassettes, periodicals, and<br>similar goods through a membership group or club that is regulated by the<br>federal trade commission under title 16, Code of Federal Regulations, part<br>425.1, concerning use of negative option plans by sellers in commerce.b.The sale or purchase of goods ordered through a contractual plan or<br>arrangement such as a continuity plan, subscription arrangement, or a single<br>sale or purchase series arrangement under which the seller ships goods to a<br>consumer who has consented in advance to receive the goods and after the<br>receipt of the goods is given the opportunity to examine the goods and to<br>receive a full refund of charges for the goods upon return of the goods<br>undamaged.Page No. 2c.A sale by a catalog seller that derives at least fifty percent of its annual<br>revenues from the sale of products sold in connection with the distribution of<br>catalogs of at least twenty-four pages that contain written descriptions or<br>illustrations and sale prices for each item of merchandise, if the catalogs are<br>distributed in more than one state with a total annual distribution of at least two<br>hundred fifty thousand.53-11-05. Penalty - Remedies.1.A violation of this chapter is an unlawful practice in violation of section 51-15-02 and<br>is subject to applicable provisions of chapter 51-15.2.A person who intentionally violates this chapter is guilty of a class C felony. It is<br>evidence of intent if the violation occurs after the attorney general has notified a<br>person by certified mail that the person is in violation of this section.3.A person suffering pecuniary loss because of an intentional violation of this chapter<br>may bring an action in district court to recover costs, reasonable attorney's fees, and<br>the greater of five hundred dollars or twice the amount of the pecuniary loss.4.This chapter provides relief in addition to the remedies or penalties provided under<br>other law.Page No. 3Document Outlinechapter 53-11 contest prize notices]]>