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Can I offer contests that involve free entry in Indiana? What are the requirements?
To offer contests that involve free entry in Indiana, you must comply with the requirements set forth in Indiana Code Title 24, Article 8, Chapter 3.
Requirements for Offering Contests with Free Entry in Indiana
- Disclosure of Prizes [IC 24-8-4-1]: Before a demonstration, seminar, or sales presentation begins, the promoter shall inform the person of the prize, if any, the person will receive.
- Time Prizes, Vouchers, or Certificates Given [IC 24-8-4-2]: A prize or a voucher, certificate, or other evidence of obligation given instead of a prize shall be given to a person at the time the person is informed of the prize, if any, the person will receive.
- Presentation of Winning Ticket Necessary [IC 24-8-3-9]: If prizes will not be awarded or given if a winning ticket, token, number, lot, or other device used to determine winners in a particular promotion is not presented to a promoter or a sponsor, this fact must be clearly stated in the notice.
- “Prize” Defined [IC 24-8-2-3]: “Prize” means a gift, award, or other item distributed in a promotion.
- Eligibility Limitations [IC 24-8-3-8]: A limitation on the eligibility of persons must be clearly disclosed in the notice in at least 10 point boldface type.
- Statement of Verifiable Retail Value of Prizes [IC 24-8-3-3]: The notice must state the verifiable retail value of each prize a participant has been awarded or may have been awarded.
- Applicability of Article [IC 24-8-1-1]: This article applies to a promotion offer made: (1) by a person in Indiana; or (2) to a person in Indiana.
Donations of Alcoholic Beverages to be Prizes
If you plan to offer alcoholic beverages as prizes, you must also comply with the requirements set forth in Indiana Code Title 7.1, Article 3, Chapter 6.1.
- Donations of Alcoholic Beverages to be Prizes [IC 7.1-3-6.1-5]: A qualified organization may purchase or receive donations of alcoholic beverages in sealed bottles or cases from certain permittees or receive donations of alcoholic beverages in sealed bottles or cases from persons who are not permittees.
- Alcoholic Beverage Prize Winner Presence Required; Requirements for Designated Person to Give Alcoholic Beverage Prize Away [IC 7.1-3-6.1-6]: An individual must be present at the allowable event in order to win an alcoholic beverage prize. The prize winner must be given the alcoholic beverage prize in person by an individual designated by the qualified organization.
- When giving away an alcoholic beverage prize, the individual designated by the qualified organization shall comply with IC 7.1-5-10-15, IC 7.1-5-10-23, and any other provision of this title that applies to the furnishing of alcoholic beverages for consumption off the premises.
Conclusion
To offer contests that involve free entry in Indiana, you must comply with the requirements set forth in Indiana Code Title 24, Article 8, Chapter 3. If you plan to offer alcoholic beverages as prizes, you must also comply with the requirements set forth in Indiana Code Title 7.1, Article 3, Chapter 6.1.
Jurisdiction
Indiana