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

Yes, you can offer contests that involve merchandise prizes in New Jersey. However, there are certain requirements that you must comply with.

According to NJAC 13:47-8.7, when tickets are sold for an off-premise raffle awarding merchandise as a prize, each ticket shall contain at least the following information:

  1. Name and identification number of the qualified organization and number of the license issued for the occasion;
  2. Place where the occasion will be held and the date and time thereof;
  3. A list of the prizes and the retail value of each;
  4. The number of the ticket;
  5. Price of the ticket;
  6. The purpose to which the entire net proceeds will be devoted;
  7. The statement: “No substitution of the offered prize may be made and no cash will be given in lieu of the prize.”

In addition, the presence of the holder of a ticket shall not be required in order to win unless the ticket bears the statement “NOT VALID UNLESS HOLDER IS PRESENT AT THE DRAWING.” All information required by (a), (b) and (c) above shall be clearly and conspicuously set forth on the face of the ticket.

It is important to note that certain prizes are prohibited in New Jersey, such as real estate, bonds, shares of stock, securities or evidences of indebtedness, weapons, live animals (except a gift certificate redeemable for live, edible seafood), foreign or domestic coins (except collector pieces or sets that are marketed as such and are clearly not intended for use as legal tender), tobacco products, and motor vehicle leases [2.1].

The value of the merchandise prize must be its current retail price, and it cannot be redeemable or convertible into cash directly or indirectly [2.2].

If you are conducting a special door-prize raffle, you must be a qualified organization with an identification number, no extra charge may be made for the raffle, only merchandise prizes may be given, the total retail value of all prizes must be less than $200, and all net proceeds of the occasion must be devoted to authorized purposes [3.3].

If you are conducting a calendar raffle, the maximum prize value for cash or merchandise is $25,000 [3.5].

Therefore, if you comply with the above requirements and avoid prohibited prizes, you can offer contests that involve merchandise prizes in New Jersey.

Source(s):
Jurisdiction

New Jersey