Prizes

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 940 CMR 6.08(5)(c). 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.