Costs Associated with Promotional Programs

PURPOSE: This rule is designed to clarify costs which may or may not be borne by the recipient of a gift, prize, award or other type of inducement device of a time-share property or facility. (1) When a promotional device uses the words sweepstakes, drawing, giveaway, award, prize, gift or any other similar word which implies the recipient has won something, there shall be no other requirement of the recipient other than listening to a sales presentation and taking a tour of the timeshare property being offered for sale. Pursuant to subsection 2 of section 407.610, RSMo, the seller offering the time-share property shall make delivery of the inducement gift, if not at the time of visitation, within ten (10) days following such visitation, or shall deliver instead of such gift, or its acceptable substitute, cash in an amount equal to the retail value of the gift. Cost of such delivery shall be paid by the seller. (2) A promotional device shall not offer as a substitute for a prize, award, gift or other inducement device, a certificate of redemption for an item unless it is fully disclosed that the recipient has not won an item but will be allowed to pay for that prize, award, gift or other inducement at a discounted price. The discount price to be paid by the recipient shall be printed in close proximity to the largest printed name of the product items offered. AUTHORITY: section 407.145, RSMo 1986.* Original rule filed Nov. 14, 1986, effective May 11, 1987. *Original authority: 407.145, RSMo 1986.