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Can I offer contests that involve merchandise prizes in Arkansas? What are the requirements?
Yes, you can offer contests that involve merchandise prizes in Arkansas. However, there are certain requirements that must be met.
Requirements for Offering Contests with Merchandise Prizes in Arkansas
- The merchandise prize must have a recognized wholesale cost not to exceed one thousand dollars ($1,000) [1.1].
- A copy of the receipt for merchandise must be maintained in the licensed authorized organization’s bingo records [1.1].
- The contest must not be misleading or deceptive [2.2].
- All relevant information necessary to make an informed decision concerning the contest must be provided to Arkansas consumers [2.2].
- False or misleading advertising about the contest is prohibited [3.1].
- The contest must not induce persons to play by extending credit or by providing financial assistance, alcohol, or any other compensation [3.1].
It is important to note that these requirements apply specifically to contests offered by licensed authorized organizations in Arkansas. If you are not a licensed authorized organization, different rules may apply.
Additionally, there are exemptions to the requirements for prize promotions where all prizes are awarded absolutely for free and there is no opportunity for the payment of money from the person to the sponsor or any agent of the sponsor [2.1].
Source(s):
- [1.1] Prizes.
- [2.1] Exemptions.
- [2.2] Legislative finding, declaration, and intent.
- [3.1] Retailer Prohibitions
Jurisdiction
Arkansas