Pub. 2 2023-2024 Directory

104 | 2024 Membership Directory 1 ) There is one exception to this requirement, which applies only to deposits for securing reservations in connection with “vacation” and “holiday” promotions. (See section c. below for details); iii. Upon arriving at the place of business or allowing the sponsor to enter the participant’s home, the participant must be immediately informed which, if any prize they will receive, and the prize (or any voucher, certificate or other evidence of obligation in lieu of the actual prize) must also be given at that time. This must be done prior to any attempts at sales presentations of any kind; iv. Substitution of prizes cannot be made. If the represented prize is not available, the sponsor must give the participant a certificate which guarantees shipment within 30 days at no cost to the participant. If the prize is not shipped within 30 days, the sponsor must mail to the participant a valid check or money order for the amount listed in the notice as the verifiable retail value; v. If a participant receives a voucher or certificate for a prize which names another party as responsible for delivering the prize, and that party fails to deliver the prize as represented in the original notice, the sponsor, which is defined as the business whose goods or services are being promoted or advertised, is responsible for delivering the prize; and vi. Upon request of the Attorney General, the sponsor and/or promoter must provide the names, addresses and telephone numbers of all prize recipients within ten days of the request. vii. All prizes offered and awarded must be noncash prizes only and cannot be redeemable for cash. c. Special Provisions Relating to Vacations and Holidays. When one of the prizes offered is a vacation, holiday or item described by similar terms: i. The vacation or holiday must include all transportation, meals and lodging, unless the offer or notice specifically describes any transportation, meals or lodging which is not included; ii. If a deposit is required to secure a reservation, the offer, notice or other representation must disclose that information; and iii. The offer or notice may not say that a person is a winner, has been selected or approved, or is in any other manner involved in a select or special group for receipt of an opportunity or prize, or that a person is entering a contest, sweepstakes, drawing or other competitive enterprise from which a winner will be selected, if in fact the enterprise is designed to make contact with prospective customers, or if all or a substantial number of those entering will receive the same prize or opportunity. d. Penalties and Consequences. A promotion which does not comply with the provisions of the FBPA may potentially result in the following actions: i. The Attorney General may issue a Cease and Desist Order; ii. The Attorney General may issue a Civil Penalty Order in an amount up to $2,000 per violation; 1 ) In cases involving elderly or disabled consumers, additional civil penalties apply; iii. The Attorney General may file a civil action seeking injunctive relief and civil penalties of up to $5,000 per violation; 1 ) In cases involving elderly or disabled consumers, additional civil penalties apply;

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