Current through Register 1531, September 27, 2024
It is an unfair or deceptive act for a seller to offer any
product for free or at a reduced price (a "prize"), to a prospective buyer in
conjunction with the prospective buyer's participation in a sales presentation
or promotional contest, unless:
(1)
The seller clearly and conspicuously identifies the prize in the
advertisement;
(2) The seller
clearly and conspicuously discloses in the advertisement the value of the
prize, with such value being determined according to:
(a)
940 CMR
6.05(3) if the prize has
been sold or offered for sale by the seller; or
(b)
940 CMR
6.05(8) or (9) in all other
instances, unless the prize is not commercially available in which case the
seller shall identify a value reasonably and in good faith;
(3) The seller clearly and
conspicuously discloses in the advertisement the following material conditions
or limitations imposed by the seller as a prerequisite to receipt of or on the
use of the prize. Consistent with these provisions:
(a) The seller shall clearly and
conspicuously disclose the following material facts
1. Limitations on the geographic area covered
by the offer; and
2. The day or
dates the promotion commences and terminates.
(b) The following material conditions or
limitations, if applicable to the prize promotion, need not be disclosed in any
advertisement, except each must be disclosed on any contest entry blank:
1. That all entries must be complete to be
eligible;
2. That entrants need not
be present to win;
3. That people
under 18 and people affiliated with the seller, sponsor or marketing agent are
ineligible to enter the contest and/or win any of the prizes;
4. That no substitution will be allowed and
prizes may not be redeemed for cash or other consideration;
5. That a winner may be required to sign an
affidavit of eligibility and a receipt;
6. That taxes, where applicable, are the sole
responsibility of the winner; and
7. That the contest is void where prohibited
by law;
8. The address at which
individuals may request the identity of the prizewinners pursuant to 6.08(5)(c)
below.
9. That upon written
request, the seller is obligated to identify the winners of the prize, the name
and the city or town of residence of each prize winner, the date of receipt of
the prize, and the value of the prize.
(c) If a prize promotion has any condition or
limitation which materially differs from those listed in 940 CMR 6.08(3)(b), a
seller must disclose such condition or limitation in any
advertisement.
(4) All
other material conditions or limitations must be clearly and conspicuously
disclosed in the official rules to be made available to the prospective buyer
at the time and place of entry or participation. The seller shall notify the
prospective buyer/entrant of the availability of such rules.
(5) In every prize promotion in which there
is a risk that each person satisfying the conditions or limitations disclosed
in the advertisement will not receive the advertised prize:
(a) The seller shall clearly and
conspicuously disclose in the advertisement the quantity of each prize
offered;
(b) The seller shall
clearly and conspicuously disclose the numerical odds of receiving each prize
or, if the odds cannot be reasonably calculated, the approximate number of
individuals to whom the advertisement is disseminated or the fact that the odds
of winning a prize are determined by the number of entries received; the fact
that no purchase or payment is required to win a prize or to participate in a
prize promotion and that any purchase or payment will not increase the person's
chances of winning the prize; and the means by which an individual may enter
the prize promotion without making a purchase; and
(c) The seller shall by mail, if so requested
in writing, provide the name and the city or town of residence of each prize
winner, the date of receipt of the prize, and the value of the prize.
(6) The prize is provided to the
entitled consumer at the time the conditions are met, unless:
(a) The advertisement clearly and
conspicuously discloses a specific later delivery date (for example, 20 days
after the consumer satisfies the advertised conditions); or
(b) The consumer agrees in writing to a
specific later delivery date.
