§ 75-33. Representation of eligibility to win a prize. - North Carolina Statutes

§75‑33.  Representation of eligibility to win a prize.

(a)        No person, firm orcorporation engaged in commerce shall, in connection with the sale or lease orsolicitation for sale or lease of any goods, property or service, representthat another person, firm, and/or corporation has a chance to receive any prizeor item of value without clearly disclosing on whose behalf the contest orpromotion is conducted, and all material conditions which a participant mustmeet. Additionally, each of the following must be clearly and prominentlydisclosed immediately adjacent to the description of the item or prize to whichit relates:

(1)        The actual retailvalue of each item or prize (the price at which substantial sales of the itemwere made in the area within the last 90 days, or if no substantial sales weremade, the actual cost of the item or prize to the person on whose behalf thecontest or promotion is conducted);

(2)        The actual number ofeach item or prize to be awarded;

(3)        The odds ofreceiving each item or prize.

It shall be unlawful to makeany representation of the type governed by this section, if it has already beendetermined which items will be given to the person to whom the representationis made.

(b)        The provisions ofthis section shall not apply where (i) all that is asked of participants isthat they complete and mail, or deposit at a local retail commercialestablishment, an entry blank obtainable locally or by mail, or call in theirentry by telephone, and (ii) at no time are participants asked to listen to asales presentation.

(c)        To the extent thatrepresentations of the type governed by this section are broadcast by radio ortelevision or carried by cable‑television, the required disclosures neednot be made, if the required information is made available to interestedpersons on request without charge or cost to them.

(d)        Nothing in thissection shall create any liability for acts by the publisher, owner, agent oremployee of a newspaper, periodical, radio station, television station, cable‑televisionsystem or other advertising medium arising out of the publication ordissemination of any advertisement or promotion governed by this section, whenthe publisher, owner, agent or employee did not know that the advertisement orpromotion violated the requirements of this section. (1979,c. 879, s. 1; 1981, c. 806; 1983, c. 721, s. 3.)