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Can I offer contests that involve merchandise prizes in Massachusetts? What are the requirements?

Yes, you can offer contests that involve merchandise prizes in Massachusetts. Here are the requirements you need to follow:

Requirements for Offering Contests with Merchandise Prizes in Massachusetts

In Massachusetts, 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 the following requirements are met [1.1]:

  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.
  3. The seller clearly and conspicuously discloses in the advertisement the material conditions or limitations imposed by the seller as a prerequisite to receipt of or on the use of the prize.
  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.

Additionally, 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 [1.1].

Procedure for Claiming Prizes

If you are offering a contest with merchandise prizes, you must also follow the procedure for claiming prizes in Massachusetts [3.2]:

  1. All prizes shall be paid within a reasonable time after they are awarded and after the claims are verified by the Director.
  2. To be eligible for a prize, the prize winner must submit an original winning ticket prior to the expiration of the claim period.
  3. Each prize ticket owner, other than those paid in cash, or his or her representative is required to complete the claim form which is available free of charge at each Sales Agent or Lottery office and sign the winning ticket.
  4. All claims are subject to the M.G.L. c. 10, §§ 22 through 35 and 36, 961 CMR 2.00, and Lottery verification procedures which includes, but may not be limited to, any or all claim procedures required by any multi-state agreements to which the Lottery is subject.

Payment of Prizes

All prizes shall be paid within a reasonable time after they are awarded and after the claims are verified by the Director. The date of the first installment payment of each prize requiring annual payments shall be the commencement date of the payments and a payment shall be made on or about the anniversary date of the drawing thereafter in accordance with the type of prize awarded. The Director may, at any time, delay any payment in order to review a change of circumstances relative to the prize awarded, the payee, the claim or any other matter that may have come to his or her attention. All delayed payments will be brought up to date immediately upon the Director’s confirmation and continue to be paid on each original anniversary date thereafter [2.1].

Prizes Payable after Death or Disability of Owner

All prizes or a portion thereof which remain unpaid at the time of the prize winner’s death shall be payable to his or her duly qualified Administrator, Executor or other representative of his or her estate once satisfactory evidence of said representative’s appointment has been presented to the Director, claim forms have been properly filled out, and the Director is satisfied that such payment is lawful and proper. Prize monies will be paid according to the Law of Descent and Distribution of the Commonwealth of Massachusetts if the owner thereof dies intestate regardless of whether he or she was domiciled at the time of his or her death in the Commonwealth of Massachusetts or according to the provisions of his or her Last Will and Testament if he or she dies testate. The Director may rely wholly on the presentment of certified copies of a court’s appointment of an Administrator or Executor, Guardian, Conservator or on any other evidence of a person entitled to the payment of any prize winnings then due. The payment to the estate of the deceased owner of any prize winnings by the Commission shall absolve the Commission and its agents of any further liability for payment of said prize winnings. The Commission need not look to the payment of the prize winnings beyond the payee thereof. Under no circumstances will the payment of prize money be accelerated beyond its normal dates of payment by the Commission [3.1].

If you have any further questions or concerns, it is recommended that you consult with a legal professional.

Source(s):
Jurisdiction

Massachusetts