§ 66-263. Bond requirement; prizes and gifts. - North Carolina Statutes

§66‑263.  Bond requirement; prizes and gifts.

(a)        At least 10 daysbefore the commencement of any promotion offering any gift or prize with anactual or represented market value of five hundred dollars ($500.00) or more,the telephonic seller shall notify the Secretary in writing of the details ofthe promotion, fully describing the nature and number of all gifts or prizesand their current market value, the seller's rules and regulations governingthe promotion, and the date the gifts or prizes are to be awarded. All gifts orprizes offered shall be awarded. Concurrent with notifying the Secretary underthis subsection, the telephonic seller shall post a bond with the Secretary forthe market value or the represented value, whichever is greater, of all giftsor prizes represented as available under the promotion. The bond must be issuedby a surety company authorized to do business in this State. The bond shall bein favor of the State of North Carolina for the benefit of any person entitledto receive a gift or prize under the promotion who did not receive it within 30days of the specified date of award. The amount recoverable by any person underthe bond shall not exceed the market value, the represented value of the giftor prize, or the amount of any consideration or contribution paid by thatperson in response to the telephone solicitation, whichever is greatest.

(b)        Within 45 daysafter the specified date of the award of the gift or prize, the seller shallprovide, in writing, to the Secretary, proof that the gifts or prizes wereawarded. The writing shall include the name, address, and telephone number ofall persons receiving awards or prizes. The bond shall be maintained until theSecretary receives reliable proof that the gifts or prizes have been deliveredto the intended recipients.

(c)        The AttorneyGeneral, on behalf of any injured purchaser, or any purchaser who is injured bythe bankruptcy of the telephonic seller or its breach of any agreement enteredinto in its capacity as a telephonic seller, may initiate a civil action torecover against the bond. (1997‑482, s. 1.)