CONTESTS/SWEEPSTAKES/GIFTS/PRIZES - Revision history

Cicjscribner at 17:26, 8 March 2011

2011-03-08T17:26:04Z

← Older revision		Revision as of 17:26, 8 March 2011
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		+	<p>[[File:Whitebox.jpg\|705-Attorney General\|link=_Hint]]</p>
		+
	{\| align="center" border = 0		{\| align="center" border = 0
	!		!

Cicjscribner at 20:28, 16 September 2010

2010-09-16T20:28:58Z

← Older revision		Revision as of 20:28, 16 September 2010
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-	~~<p>~~'''Publications available:'''<br>	+	'''Publications available:'''<br>
	Be Smart Buy Smart - What Consumers Should Know About Prizes and Gifts<br>		Be Smart Buy Smart - What Consumers Should Know About Prizes and Gifts<br>
	Be Smart Buy Smart - What Consumer Should Know About Sweepstakes, Contests and Lotteries<br>		Be Smart Buy Smart - What Consumer Should Know About Sweepstakes, Contests and Lotteries<br>

Cicjscribner at 20:28, 16 September 2010

2010-09-16T20:28:27Z

← Older revision		Revision as of 20:28, 16 September 2010
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	\|-		\|-
	\| <h4 align="center"><big>CONTESTS/SWEEPSTAKES/GIFTS/PRIZES</big><br /></h4>		\| <h4 align="center"><big>CONTESTS/SWEEPSTAKES/GIFTS/PRIZES</big><br /></h4>
-	\| [[A\|go back]]	+	\| [[C\|go back]]
	\|-		\|-
	\|}		\|}
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	*Write a letter of complaint to:<br>		*Write a letter of complaint to:<br>

-	'''Department of Justice'''<br>	+	'''<font color="#4AA02C">Department of Justice</font color="#4AA02C">'''<br>
-	Office of the Attorney General<br>	+	'''Office of the Attorney General'''<br>
	Public Inquiry Unit<br>		Public Inquiry Unit<br>
	PO Box 944255<br>		PO Box 944255<br>
Line 116:		Line 116:
	(800) 952-5225 (CA Callers)<br>		(800) 952-5225 (CA Callers)<br>
	(916) 322-3360 (Out of State)<br>		(916) 322-3360 (Out of State)<br>
-	(916) 323-5341 ~~(fax)~~<br>	+	(916) 323-5341 Fax<br>
	(800) 952-5548 (TDD in CA)<br>		(800) 952-5548 (TDD in CA)<br>
	(916) 327-5564 (TDD Out of State)<br>		(916) 327-5564 (TDD Out of State)<br>
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	<p>If you feel the advertisement for the contest or sweepstakes was misleading, or the method of promotion was deceptive, contact the California Attorney General's Office, or the:</p><br>		<p>If you feel the advertisement for the contest or sweepstakes was misleading, or the method of promotion was deceptive, contact the California Attorney General's Office, or the:</p><br>

-	'''Federal Trade Commission (FTC)'''<br>	+	'''<font color="#4AA02C">Federal Trade Commission (FTC)</font color="#4AA02C">'''<br>
	901 Market Street, Suite 570<br>		901 Market Street, Suite 570<br>
	San Francisco, CA 94103-1798<br>		San Francisco, CA 94103-1798<br>
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	[http://www.ftc.gov/ '''www.ftc.gov''']<br>		[http://www.ftc.gov/ '''www.ftc.gov''']<br>

-	'''Federal Trade Commission (FTC)'''<br>	+	'''<font color="#4AA02C">Federal Trade Commission (FTC)</font color="#4AA02C">'''<br>
	10877 Wilshire Boulevard, Suite 700<br>		10877 Wilshire Boulevard, Suite 700<br>
	Los Angeles, CA 90024<br>		Los Angeles, CA 90024<br>
Line 142:		Line 142:


-	<p>'''Publications available:''' Be Smart Buy Smart - "What Consumers Should Know About Prizes and Gifts."Be Smart Buy Smart - What Consumer Should Know About Sweepstakes, Contests and Lotteries~~."</p>~~	+	<p>'''Publications available:'''<br>
-	~~<p>'''Other References:''' U.S. Postal Inspection</p>~~	+	Be Smart Buy Smart - What Consumers Should Know About Prizes and Gifts<br>
-	~~<p>'''Other Referrals:''' Attorney General, Federal Trade Commission, District Attorney</p>~~<br>	+	Be Smart Buy Smart - What Consumer Should Know About Sweepstakes, Contests and Lotteries<br>

Cicjscribner at 16:08, 23 June 2010

2010-06-23T16:08:10Z

← Older revision		Revision as of 16:08, 23 June 2010
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-	'''*All contest and promotional puzzles and games must clearly and conspicuously disclose each of the following:'''<br>	+	'''All contest and promotional puzzles and games must clearly and conspicuously disclose each of the following:'''<br>

	*All the rules, regulations, terms, and conditions of the contest<br>		*All the rules, regulations, terms, and conditions of the contest<br>
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-	A lottery is composed of three elements:<br>	+	'''A lottery is composed of three elements:'''<br>

-	# ~~one~~ a prize (for example, money, an automobile, a vacation, or the right to play a free game),<br>	+	# a prize (for example, money, an automobile, a vacation, or the right to play a free game),<br>
-	# ~~two~~ payment of consideration to be eligible to win a prize (for example, $2.25 in exchange for a game card, or the purchase of a product sold by the sponsoring company), and<br>	+	# payment of consideration to be eligible to win a prize (for example, $2.25 in exchange for a game card, or the purchase of a product sold by the sponsoring company), and<br>
-	# ~~three~~ distribution of the prize by chance. If one of these three elements is missing, then the scheme is not a lottery.<br>	+	# distribution of the prize by chance. If one of these three elements is missing, then the scheme is not a lottery.<br>


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	<big>'''Where to Go For Help:'''</big><br>		<big>'''Where to Go For Help:'''</big><br>
		+

	*The local district attorney's office.<br>		*The local district attorney's office.<br>

		+
	*Write a letter of complaint to:<br>		*Write a letter of complaint to:<br>

Cicjscribner at 16:06, 23 June 2010

2010-06-23T16:06:25Z

← Older revision		Revision as of 16:06, 23 June 2010
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	'''*All contest and promotional puzzles and games must clearly and conspicuously disclose each of the following:'''<br>		'''*All contest and promotional puzzles and games must clearly and conspicuously disclose each of the following:'''<br>
-
-	**All the rules, regulations, terms, and conditions of the contest<br>

-	**The maximum number of ~~puzzles or games that may be necessary to complete~~ the contest ~~and determine winners~~<br>	+	*All the rules, regulations, terms, and conditions of the contest<br>

-	**The maximum ~~amount~~ of ~~money, including postage and handling fees, which a participant~~ may be ~~asked~~ to ~~pay to win each of~~ the ~~prizes offered.~~<br>	+	*The maximum number of puzzles or games that may be necessary to complete the contest and determine winners<br>

-	**The ~~date(s) the contest will end~~, and the ~~date(s) when all~~ prizes ~~will be awarded~~<br>	+	*The maximum amount of money, including postage and handling fees, which a participant may be asked to pay to win each of the prizes offered.<br>

-	**Whether future contests or tie-breakers, if any, will be significantly more difficult than the ~~initial~~ contest, and the ~~method of determining prize winners if a tie remains after completion of the last tie-breaker~~<br>	+	*The date(s) the contest will end, and the date(s) when all prizes will be awarded<br>

-	**The exact nature and ~~approximate value~~ of the ~~prizes must be disclosed clearly and conspicuously when they are offered~~<br>	+	*Whether future contests or tie-breakers, if any, will be significantly more difficult than the initial contest, and the method of determining prize winners if a tie remains after completion of the last tie-breaker<br>

-	**If a tie-breaker for extra cash or any other type of prize may be entered by paying money, it must be clearly disclosed to the participant that the payment is optional, and that he or she does not have to make the payment to play for these prizes. Participants must be given, clearly and conspicuously, the opportunity to indicate that they wish to enter this phase of the contest for free.<br>	+	*The exact nature and approximate value of the prizes must be disclosed clearly and conspicuously when they are offered<br>
		+
		+	*If a tie-breaker for extra cash or any other type of prize may be entered by paying money, it must be clearly disclosed to the participant that the payment is optional, and that he or she does not have to make the payment to play for these prizes. Participants must be given, clearly and conspicuously, the opportunity to indicate that they wish to enter this phase of the contest for free.<br>

Cicjscribner at 16:04, 23 June 2010

2010-06-23T16:04:55Z

← Older revision		Revision as of 16:04, 23 June 2010
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-	<big>'''Contests:'''<big> B & P Code 17539.1-3<br>	+	<big>'''Contests:'''</big> B & P Code 17539.1-3<br>

	*A contest involves skills or a combination of chance or skill in order to win the prize, and may be conditioned wholly or partly on a payment of some value. For example, guessing the number of jelly beans in a jar is generally not considered to be a contest, although some people go as far as to figure out mathematical formulas for the area of each jelly bean.<br>		*A contest involves skills or a combination of chance or skill in order to win the prize, and may be conditioned wholly or partly on a payment of some value. For example, guessing the number of jelly beans in a jar is generally not considered to be a contest, although some people go as far as to figure out mathematical formulas for the area of each jelly bean.<br>
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-	<big>'''Lotteries:'''<big> Penal Code 319<br>	+	<big>'''Lotteries:'''</big> Penal Code 319<br>

	*A lottery is a plan or scheme for disposing of a prize (money or something of value) predominantly by chance to people who have paid something of value for the opportunity of getting the prize.<br>		*A lottery is a plan or scheme for disposing of a prize (money or something of value) predominantly by chance to people who have paid something of value for the opportunity of getting the prize.<br>

Cicjscribner at 16:04, 23 June 2010

2010-06-23T16:04:10Z

← Older revision		Revision as of 16:04, 23 June 2010
Line 23:		Line 23:


-	<big>'''Contests:''' B & P Code 17539.1-3~~<big>~~<br>	+	<big>'''Contests:'''<big> B & P Code 17539.1-3<br>

	*A contest involves skills or a combination of chance or skill in order to win the prize, and may be conditioned wholly or partly on a payment of some value. For example, guessing the number of jelly beans in a jar is generally not considered to be a contest, although some people go as far as to figure out mathematical formulas for the area of each jelly bean.<br>		*A contest involves skills or a combination of chance or skill in order to win the prize, and may be conditioned wholly or partly on a payment of some value. For example, guessing the number of jelly beans in a jar is generally not considered to be a contest, although some people go as far as to figure out mathematical formulas for the area of each jelly bean.<br>
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-	<big>'''Lotteries:''' ~~Penal Code 319~~</big><br>	+	<big>'''Lotteries:'''<big> Penal Code 319<br>

	*A lottery is a plan or scheme for disposing of a prize (money or something of value) predominantly by chance to people who have paid something of value for the opportunity of getting the prize.<br>		*A lottery is a plan or scheme for disposing of a prize (money or something of value) predominantly by chance to people who have paid something of value for the opportunity of getting the prize.<br>

Cicjscribner at 15:50, 23 June 2010

2010-06-23T15:50:40Z

← Older revision		Revision as of 15:50, 23 June 2010
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-	'''Sweepstakes:'''<br>	+	<big>'''Sweepstakes:'''</big><br>
-	*A sweepstakes is a game of chance requiring no purchase or any other payment in order to participate in the game.<br>	+
		+	*A sweepstakes is a game of chance requiring no purchase or any other payment in order to participate in the game.<br>
		+
	*The fact that you do not have to pay anything to be eligible for the prize is what makes a sweepstakes legal. If you send in an entry on a plain sheet of paper, it must be given the same chance of winning as an entry that includes a "proof of purchase".<br>		*The fact that you do not have to pay anything to be eligible for the prize is what makes a sweepstakes legal. If you send in an entry on a plain sheet of paper, it must be given the same chance of winning as an entry that includes a "proof of purchase".<br>
		+
	*Many people mistakenly believe that purchasing the product and checking the "Yes" box on the entry envelope will increase their odds of winning the prize. However, to be legal, each entry must be given the same chance of winning the prize, whether or not the entrant makes a purchase or checks the "yes" box.<br>		*Many people mistakenly believe that purchasing the product and checking the "Yes" box on the entry envelope will increase their odds of winning the prize. However, to be legal, each entry must be given the same chance of winning the prize, whether or not the entrant makes a purchase or checks the "yes" box.<br>

		+

-	'''Contests:''' B & P Code 17539.1-3<br>	+	<big>'''Contests:''' B & P Code 17539.1-3<big><br>
-	*A contest involves skills or a combination of chance or skill in order to win the prize, and may be conditioned wholly or partly on a payment of some value. For example, guessing the number of jelly beans in a jar is generally not considered to be a contest, although some people go as far as to figure out mathematical formulas for the area of each jelly bean.<br>	+
-	* A person who operates a contest may not represent, either directly or indirectly, that another person has won any prize or item of value without disclosing its exact nature and approximate value. Similarly, a person may not make representations to someone else that he or she has won any prize or item of value in a contest, unless there has been a real contest in which at least a majority of the participants have failed to win.<br>	+	*A contest involves skills or a combination of chance or skill in order to win the prize, and may be conditioned wholly or partly on a payment of some value. For example, guessing the number of jelly beans in a jar is generally not considered to be a contest, although some people go as far as to figure out mathematical formulas for the area of each jelly bean.<br>
		+
		+	* A person who operates a contest may not represent, either directly or indirectly, that another person has won any prize or item of value without disclosing its exact nature and approximate value. Similarly, a person may not make representations to someone else that he or she has won any prize or item of value in a contest, unless there has been a real contest in which at least a majority of the participants have failed to win.<br>
		+
	*Every person who conducts a contest must disclose on each entry blank the deadline for submission of that entry.<br>		*Every person who conducts a contest must disclose on each entry blank the deadline for submission of that entry.<br>
-	*Use of the word "lucky" to describe an entry form or symbol, or any other implication that advantage is conferred on the participant in preference to other participants, is prohibited.<br>	+
		+	*Use of the word "lucky" to describe an entry form or symbol, or any other implication that advantage is conferred on the participant in preference to other participants, is prohibited.<br>
		+
	*The use of simulated checks, currency or items of value, is prohibited unless they bear the words "SPECIMEN-NONNEGOTIABLE" clearly and conspicuously.<br>		*The use of simulated checks, currency or items of value, is prohibited unless they bear the words "SPECIMEN-NONNEGOTIABLE" clearly and conspicuously.<br>
		+

	'''*All contest and promotional puzzles and games must clearly and conspicuously disclose each of the following:'''<br>		'''*All contest and promotional puzzles and games must clearly and conspicuously disclose each of the following:'''<br>

	**All the rules, regulations, terms, and conditions of the contest<br>		**All the rules, regulations, terms, and conditions of the contest<br>
		+
	**The maximum number of puzzles or games that may be necessary to complete the contest and determine winners<br>		**The maximum number of puzzles or games that may be necessary to complete the contest and determine winners<br>
		+
	**The maximum amount of money, including postage and handling fees, which a participant may be asked to pay to win each of the prizes offered.<br>		**The maximum amount of money, including postage and handling fees, which a participant may be asked to pay to win each of the prizes offered.<br>
		+
	**The date(s) the contest will end, and the date(s) when all prizes will be awarded<br>		**The date(s) the contest will end, and the date(s) when all prizes will be awarded<br>
		+
	**Whether future contests or tie-breakers, if any, will be significantly more difficult than the initial contest, and the method of determining prize winners if a tie remains after completion of the last tie-breaker<br>		**Whether future contests or tie-breakers, if any, will be significantly more difficult than the initial contest, and the method of determining prize winners if a tie remains after completion of the last tie-breaker<br>
		+
	**The exact nature and approximate value of the prizes must be disclosed clearly and conspicuously when they are offered<br>		**The exact nature and approximate value of the prizes must be disclosed clearly and conspicuously when they are offered<br>
		+
	**If a tie-breaker for extra cash or any other type of prize may be entered by paying money, it must be clearly disclosed to the participant that the payment is optional, and that he or she does not have to make the payment to play for these prizes. Participants must be given, clearly and conspicuously, the opportunity to indicate that they wish to enter this phase of the contest for free.<br>		**If a tie-breaker for extra cash or any other type of prize may be entered by paying money, it must be clearly disclosed to the participant that the payment is optional, and that he or she does not have to make the payment to play for these prizes. Participants must be given, clearly and conspicuously, the opportunity to indicate that they wish to enter this phase of the contest for free.<br>
		+

-	'''Why Companies Sponsor Contests and Sweepstakes:'''<br>	+
-	*The purpose of contests and sweepstakes is to increase sales or consumer awareness about a particular product or service the company is selling, and not to give you something for nothing. The prizes are merely incentives for consumers to buy the sponsoring company's products or services.<br>	+	'''Why Companies Sponsor Contests and Sweepstakes:'''<br>
		+
		+	*The purpose of contests and sweepstakes is to increase sales or consumer awareness about a particular product or service the company is selling, and not to give you something for nothing. The prizes are merely incentives for consumers to buy the sponsoring company's products or services.<br>
		+
	*Magazine publishing companies have greatly increased magazine sales by using sweepstakes and contests. Charitable organizations, fast food restaurants, and timeshare resorts now also use sweepstakes and contests as promotion methods.<br>		*Magazine publishing companies have greatly increased magazine sales by using sweepstakes and contests. Charitable organizations, fast food restaurants, and timeshare resorts now also use sweepstakes and contests as promotion methods.<br>


-	'''Lotteries:''' Penal Code 319<br>	+
		+	<big>'''Lotteries:''' Penal Code 319</big><br>
		+
	*A lottery is a plan or scheme for disposing of a prize (money or something of value) predominantly by chance to people who have paid something of value for the opportunity of getting the prize.<br>		*A lottery is a plan or scheme for disposing of a prize (money or something of value) predominantly by chance to people who have paid something of value for the opportunity of getting the prize.<br>
		+
	*Except for the state-run lottery and certain charitable bingo games and raffles, lotteries are illegal in California.<br>		*Except for the state-run lottery and certain charitable bingo games and raffles, lotteries are illegal in California.<br>

-	~~<p>~~A lottery is composed of three elements ~~(1)~~ a prize (for example, money, an automobile, a vacation, or the right to play a free game), ~~(2)~~ payment of consideration to be eligible to win a prize (for example, $2.25 in exchange for a game card, or the purchase of a product sold by the sponsoring company), and ~~(3)~~ distribution of the prize by chance. If one of these three elements is missing, then the scheme is not a lottery.~~</p>~~<br>	+
		+	A lottery is composed of three elements:<br>
		+
		+	# one a prize (for example, money, an automobile, a vacation, or the right to play a free game),<br>
		+	# two payment of consideration to be eligible to win a prize (for example, $2.25 in exchange for a game card, or the purchase of a product sold by the sponsoring company), and<br>
		+	# three distribution of the prize by chance. If one of these three elements is missing, then the scheme is not a lottery.<br>

-	'''Your Chances of Winning:'''<br>	+
		+
		+	<big>'''Your Chances of Winning:'''</big><br>
		+
	*Usually the odds of winning a sweepstakes, contest, or lottery are quite low: for example, more than 400 million to 1 against winning a grand prize of $500,000. To determine your odds of winning, read the fine print on the ticket or the promotional materials.<br>		*Usually the odds of winning a sweepstakes, contest, or lottery are quite low: for example, more than 400 million to 1 against winning a grand prize of $500,000. To determine your odds of winning, read the fine print on the ticket or the promotional materials.<br>
		+
	*The law prohibits the company from misrepresenting the odds of receiving any item offered.<br>		*The law prohibits the company from misrepresenting the odds of receiving any item offered.<br>

-	'''Before You Enter...'''<br>	+
-	*Carefully read the entry blank and all the promotional material. Sometimes, the entry blank is designed so that when you fill out the entry, you are also ordering products. Remember: you don't have to order anything in order to enter a sweepstakes and have a chance to win a prize.<br>	+
-	*Consider the tax implications if you win a prize. Prizes, including cash, are considered taxable income. Companies are required to report to the Internal Revenue Service (IRS) any prize with a fair market value of more than $600.<br>	+	<big>'''Before You Enter...'''</big><br>
-	*Read the entry rules carefully. You may be disqualified if you don't follow them exactly.<br>	+
-	*Be cautious of the wording of sweepstakes letter, which often give you the impression that you've already won something, and that you only have to send in a "donation" to collect. Remember: You don't have to buy or pay anything to enter a sweepstakes.<br>	+	*Carefully read the entry blank and all the promotional material. Sometimes, the entry blank is designed so that when you fill out the entry, you are also ordering products. Remember: you don't have to order anything in order to enter a sweepstakes and have a chance to win a prize.<br>
		+
		+	*Consider the tax implications if you win a prize. Prizes, including cash, are considered taxable income. Companies are required to report to the Internal Revenue Service (IRS) any prize with a fair market value of more than $600.<br>
		+
		+	*Read the entry rules carefully. You may be disqualified if you don't follow them exactly.<br>
		+
		+	*Be cautious of the wording of sweepstakes letter, which often give you the impression that you've already won something, and that you only have to send in a "donation" to collect.<br>
		+
		+	*Remember: You don't have to buy or pay anything to enter a sweepstakes.<br>
		+
	*Sweepstakes often identify "pre-selected winner(s)". Solicitation materials containing sweepstakes entry material cannot represent that the recipient is a winner or has already won a prize unless the recipient has in fact won a prize.<br>		*Sweepstakes often identify "pre-selected winner(s)". Solicitation materials containing sweepstakes entry material cannot represent that the recipient is a winner or has already won a prize unless the recipient has in fact won a prize.<br>

-	'''Where to Go For Help:'''<br>	+
		+
		+	<big>'''Where to Go For Help:'''</big><br>
		+
	*The local district attorney's office.<br>		*The local district attorney's office.<br>

Cicjscribner at 15:43, 23 June 2010

2010-06-23T15:43:29Z

Cicjscribner at 15:38, 23 June 2010

2010-06-23T15:38:35Z

← Older revision		Revision as of 15:43, 23 June 2010
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	'''Sweepstakes:'''<br>		'''Sweepstakes:'''<br>
-	* A sweepstakes is a game of chance requiring no purchase or any other payment in order to participate in the game.<br>	+	*A sweepstakes is a game of chance requiring no purchase or any other payment in order to participate in the game.<br>
-	~~<p>~~* The fact that you do not have to pay anything to be eligible for the prize is what makes a sweepstakes legal. If you send in an entry on a plain sheet of paper, it must be given the same chance of winning as an entry that includes a "proof of purchase".</p>	+	*The fact that you do not have to pay anything to be eligible for the prize is what makes a sweepstakes legal. If you send in an entry on a plain sheet of paper, it must be given the same chance of winning as an entry that includes a "proof of purchase".<br>
-	~~<p>~~* Many people mistakenly believe that purchasing the product and checking the "Yes" box on the entry envelope will increase their odds of winning the prize. However, to be legal, each entry must be given the same chance of winning the prize, whether or not the entrant makes a purchase or checks the "yes" box.~~</p>~~<br>	+	*Many people mistakenly believe that purchasing the product and checking the "Yes" box on the entry envelope will increase their odds of winning the prize. However, to be legal, each entry must be given the same chance of winning the prize, whether or not the entrant makes a purchase or checks the "yes" box.<br>


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	*Every person who conducts a contest must disclose on each entry blank the deadline for submission of that entry.<br>		*Every person who conducts a contest must disclose on each entry blank the deadline for submission of that entry.<br>
	*Use of the word "lucky" to describe an entry form or symbol, or any other implication that advantage is conferred on the participant in preference to other participants, is prohibited.<br>		*Use of the word "lucky" to describe an entry form or symbol, or any other implication that advantage is conferred on the participant in preference to other participants, is prohibited.<br>
-	* The use of simulated checks, currency or items of value, is prohibited unless they bear the words "SPECIMEN-NONNEGOTIABLE" clearly and conspicuously.</p>	+	*The use of simulated checks, currency or items of value, is prohibited unless they bear the words "SPECIMEN-NONNEGOTIABLE" clearly and conspicuously.<br>
-	*All contest and promotional puzzles and games must clearly and conspicuously disclose each of the following:<br>	+
		+	'''*All contest and promotional puzzles and games must clearly and conspicuously disclose each of the following:'''<br>
		+
	**All the rules, regulations, terms, and conditions of the contest<br>		**All the rules, regulations, terms, and conditions of the contest<br>
	**The maximum number of puzzles or games that may be necessary to complete the contest and determine winners<br>		**The maximum number of puzzles or games that may be necessary to complete the contest and determine winners<br>
Line 35:		Line 37:

	'''Why Companies Sponsor Contests and Sweepstakes:'''<br>		'''Why Companies Sponsor Contests and Sweepstakes:'''<br>
-	~~<p>~~* The purpose of contests and sweepstakes is to increase sales or consumer awareness about a particular product or service the company is selling, and not to give you something for nothing. The prizes are merely incentives for consumers to buy the sponsoring company's products or services.</p>	+	*The purpose of contests and sweepstakes is to increase sales or consumer awareness about a particular product or service the company is selling, and not to give you something for nothing. The prizes are merely incentives for consumers to buy the sponsoring company's products or services.<br>
-	~~<p>~~* Magazine publishing companies have greatly increased magazine sales by using sweepstakes and contests. Charitable organizations, fast food restaurants, and timeshare resorts now also use sweepstakes and contests as promotion methods.~~</p>~~<br>	+	*Magazine publishing companies have greatly increased magazine sales by using sweepstakes and contests. Charitable organizations, fast food restaurants, and timeshare resorts now also use sweepstakes and contests as promotion methods.<br>

		+
	'''Lotteries:''' Penal Code 319<br>		'''Lotteries:''' Penal Code 319<br>
-	~~<p>~~* A lottery is a plan or scheme for disposing of a prize (money or something of value) predominantly by chance to people who have paid something of value for the opportunity of getting the prize.</p>	+	*A lottery is a plan or scheme for disposing of a prize (money or something of value) predominantly by chance to people who have paid something of value for the opportunity of getting the prize.<br>
-	~~<p>~~* Except for the state-run lottery and certain charitable bingo games and raffles, lotteries are illegal in California.~~</p>~~<br>	+	*Except for the state-run lottery and certain charitable bingo games and raffles, lotteries are illegal in California.<br>

	<p>A lottery is composed of three elements (1) a prize (for example, money, an automobile, a vacation, or the right to play a free game), (2) payment of consideration to be eligible to win a prize (for example, $2.25 in exchange for a game card, or the purchase of a product sold by the sponsoring company), and (3) distribution of the prize by chance. If one of these three elements is missing, then the scheme is not a lottery.</p><br>		<p>A lottery is composed of three elements (1) a prize (for example, money, an automobile, a vacation, or the right to play a free game), (2) payment of consideration to be eligible to win a prize (for example, $2.25 in exchange for a game card, or the purchase of a product sold by the sponsoring company), and (3) distribution of the prize by chance. If one of these three elements is missing, then the scheme is not a lottery.</p><br>

	'''Your Chances of Winning:'''<br>		'''Your Chances of Winning:'''<br>
-	~~<p>~~* Usually the odds of winning a sweepstakes, contest, or lottery are quite low: for example, more than 400 million to 1 against winning a grand prize of $500,000. To determine your odds of winning, read the fine print on the ticket or the promotional materials.</p>	+	*Usually the odds of winning a sweepstakes, contest, or lottery are quite low: for example, more than 400 million to 1 against winning a grand prize of $500,000. To determine your odds of winning, read the fine print on the ticket or the promotional materials.<br>
-	~~<p>~~* The law prohibits the company from misrepresenting the odds of receiving any item offered.~~</p>~~<br>	+	*The law prohibits the company from misrepresenting the odds of receiving any item offered.<br>

	'''Before You Enter...'''<br>		'''Before You Enter...'''<br>
-	~~<p>~~* Carefully read the entry blank and all the promotional material. Sometimes, the entry blank is designed so that when you fill out the entry, you are also ordering products. Remember: you don't have to order anything in order to enter a sweepstakes and have a chance to win a prize.</p>	+	*Carefully read the entry blank and all the promotional material. Sometimes, the entry blank is designed so that when you fill out the entry, you are also ordering products. Remember: you don't have to order anything in order to enter a sweepstakes and have a chance to win a prize.<br>
-	~~<p>~~* Consider the tax implications if you win a prize. Prizes, including cash, are considered taxable income. Companies are required to report to the Internal Revenue Service (IRS) any prize with a fair market value of more than $600.</p>	+	*Consider the tax implications if you win a prize. Prizes, including cash, are considered taxable income. Companies are required to report to the Internal Revenue Service (IRS) any prize with a fair market value of more than $600.<br>
-	~~<p>~~* Read the entry rules carefully. You may be disqualified if you don't follow them exactly.</p>	+	*Read the entry rules carefully. You may be disqualified if you don't follow them exactly.<br>
-	~~<p>~~* Be cautious of the wording of sweepstakes letter, which often give you the impression that you've already won something, and that you only have to send in a "donation" to collect. Remember: You don't have to buy or pay anything to enter a sweepstakes.</p>	+	*Be cautious of the wording of sweepstakes letter, which often give you the impression that you've already won something, and that you only have to send in a "donation" to collect. Remember: You don't have to buy or pay anything to enter a sweepstakes.<br>
-	~~<p>~~* Sweepstakes often identify "pre-selected winner(s)". Solicitation materials containing sweepstakes entry material cannot represent that the recipient is a winner or has already won a prize unless the recipient has in fact won a prize.</p>	+	*Sweepstakes often identify "pre-selected winner(s)". Solicitation materials containing sweepstakes entry material cannot represent that the recipient is a winner or has already won a prize unless the recipient has in fact won a prize.<br>

	'''Where to Go For Help:'''<br>		'''Where to Go For Help:'''<br>
-	~~<p>~~* The local district attorney's office.~~</p>~~<br>	+	*The local district attorney's office.<br>

-	~~<p>~~* Write a letter of complaint to:~~</p>~~<br>	+	*Write a letter of complaint to:<br>

	'''Department of Justice'''<br>		'''Department of Justice'''<br>
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-	<p>* If you have a problem with a contest or sweepstakes and the entry form and promotional materials were sent to you in the mail, contact the U.S. Postal Service (look in the white pages of your phone book under U.S. Government). The U.S. Postal Inspector may also take action against foreign lotteries soliciting people within the United States.</p>	+	<p>If you have a problem with a contest or sweepstakes and the entry form and promotional materials were sent to you in the mail, contact the U.S. Postal Service (look in the white pages of your phone book under U.S. Government). The U.S. Postal Inspector may also take action against foreign lotteries soliciting people within the United States.</p><br>
-	<p>* If you feel the advertisement for the contest or sweepstakes was misleading, or the method of promotion was deceptive, contact the California Attorney General's Office, or the:</p><br>	+
		+	<p>If you feel the advertisement for the contest or sweepstakes was misleading, or the method of promotion was deceptive, contact the California Attorney General's Office, or the:</p><br>

	'''Federal Trade Commission (FTC)'''<br>		'''Federal Trade Commission (FTC)'''<br>

← Older revision		Revision as of 15:38, 23 June 2010
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	'''Contests:''' B & P Code 17539.1-3<br>		'''Contests:''' B & P Code 17539.1-3<br>
-	~~<p>~~* A contest involves skills or a combination of chance or skill in order to win the prize, and may be conditioned wholly or partly on a payment of some value. For example, guessing the number of jelly beans in a jar is generally not considered to be a contest, although some people go as far as to figure out mathematical formulas for the area of each jelly bean.</p>	+	*A contest involves skills or a combination of chance or skill in order to win the prize, and may be conditioned wholly or partly on a payment of some value. For example, guessing the number of jelly beans in a jar is generally not considered to be a contest, although some people go as far as to figure out mathematical formulas for the area of each jelly bean.<br>
-	~~<p>~~* A person who operates a contest may not represent, either directly or indirectly, that another person has won any prize or item of value without disclosing its exact nature and approximate value. Similarly, a person may not make representations to someone else that he or she has won any prize or item of value in a contest, unless there has been a real contest in which at least a majority of the participants have failed to win.</p>	+	* A person who operates a contest may not represent, either directly or indirectly, that another person has won any prize or item of value without disclosing its exact nature and approximate value. Similarly, a person may not make representations to someone else that he or she has won any prize or item of value in a contest, unless there has been a real contest in which at least a majority of the participants have failed to win.<br>
-	~~<p>~~* Every person who conducts a contest must disclose on each entry blank the deadline for submission of that entry.</p>	+	*Every person who conducts a contest must disclose on each entry blank the deadline for submission of that entry.<br>
-	~~<p>~~* Use of the word "lucky" to describe an entry form or symbol, or any other implication that advantage is conferred on the participant in preference to other participants, is prohibited.</p>	+	*Use of the word "lucky" to describe an entry form or symbol, or any other implication that advantage is conferred on the participant in preference to other participants, is prohibited.<br>
-	~~<p>~~* The use of simulated checks, currency or items of value, is prohibited unless they bear the words "SPECIMEN-NONNEGOTIABLE" clearly and conspicuously.</p>	+	* The use of simulated checks, currency or items of value, is prohibited unless they bear the words "SPECIMEN-NONNEGOTIABLE" clearly and conspicuously.</p>
-	~~<p>~~* All contest and promotional puzzles and games must clearly and conspicuously disclose each of the following:~~</p>~~<br>	+	*All contest and promotional puzzles and games must clearly and conspicuously disclose each of the following:<br>
-	~~<p>~~** All the rules, regulations, terms, and conditions of the contest</p>	+	**All the rules, regulations, terms, and conditions of the contest<br>
-	~~<p>~~** The maximum number of puzzles or games that may be necessary to complete the contest and determine winners</p>	+	**The maximum number of puzzles or games that may be necessary to complete the contest and determine winners<br>
-	~~<p>~~** The maximum amount of money, including postage and handling fees, which a participant may be asked to pay to win each of the prizes offered </p>	+	**The maximum amount of money, including postage and handling fees, which a participant may be asked to pay to win each of the prizes offered.<br>
-	~~<p>~~** The date(s) the contest will end, and the date(s) when all prizes will be awarded</p>	+	**The date(s) the contest will end, and the date(s) when all prizes will be awarded<br>
-	~~<p>~~** Whether future contests or tie-breakers, if any, will be significantly more difficult than the initial contest, and the method of determining prize winners if a tie remains after completion of the last tie-breaker</p>	+	**Whether future contests or tie-breakers, if any, will be significantly more difficult than the initial contest, and the method of determining prize winners if a tie remains after completion of the last tie-breaker<br>
-	~~<p>~~** The exact nature and approximate value of the prizes must be disclosed clearly and conspicuously when they are offered</p>	+	**The exact nature and approximate value of the prizes must be disclosed clearly and conspicuously when they are offered<br>
-	~~<p>~~** If a tie-breaker for extra cash or any other type of prize may be entered by paying money, it must be clearly disclosed to the participant that the payment is optional, and that he or she does not have to make the payment to play for these prizes. Participants must be given, clearly and conspicuously, the opportunity to indicate that they wish to enter this phase of the contest for free~~</p>~~<br>	+	**If a tie-breaker for extra cash or any other type of prize may be entered by paying money, it must be clearly disclosed to the participant that the payment is optional, and that he or she does not have to make the payment to play for these prizes. Participants must be given, clearly and conspicuously, the opportunity to indicate that they wish to enter this phase of the contest for free.<br>

	'''Why Companies Sponsor Contests and Sweepstakes:'''<br>		'''Why Companies Sponsor Contests and Sweepstakes:'''<br>