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Can I offer contests that involve cash prizes in Hawaii? What are the requirements?

Based on the documents provided, offering contests that involve cash prizes in Hawaii is allowed, but there are specific requirements that must be followed.

Requirements for Offering Contests with Cash Prizes in Hawaii

  1. All material terms of the transaction, including handling, shipping, delivery, or any other fee, must be clearly and conspicuously disclosed at the time of the offer [1.1].
  2. Information on the odds of being able to receive the prize or if the odds are not calculable in advance, the factors used in calculating the odds must be included in the offer [1.1].
  3. A statement that no purchase or payment is required to win a prize or to participate in a prize promotion must be included in the offer [1.1].
  4. Instructions on how to participate without purchase or payment including an address or toll-free telephone number to which a consumer may write or call for information on how to participate must be included in the offer [1.1].
  5. If the contest or sweepstakes is based on an element of chance, the promoter must not promote a contest or sweepstakes in which some or all of the prizes may not be awarded, or fail to award all prizes or awards offered, unless the promoter makes certain disclosures to each offeree in writing and in a conspicuous manner prior to the acceptance of the offeree’s entry [1.1].
  6. If the contest or sweepstakes offers a prize of real property, the offeror must file and maintain with the director of commerce and consumer affairs a bond in a sum not less than $10,000, executed by the offeror, and naming the director as the obligee and a surety company authorized to do business in the State as surety [1.1].

Conclusion

In summary, offering contests with cash prizes in Hawaii is allowed, but there are specific requirements that must be followed. These requirements include clearly disclosing all material terms of the transaction, providing information on the odds of winning, and including instructions on how to participate without purchase or payment. Additionally, if the contest offers a prize of real property, a bond must be filed and maintained with the director of commerce and consumer affairs. [1.1]

Source(s):
Jurisdiction

Hawaii