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

Here is the response to your query:

Offering Contests with Non-Cash Prizes in Hawaii

In Hawaii, it is legal to offer contests with non-cash prizes as long as certain requirements are met. The Hawaii Revised Statutes (HIRS) provide guidelines for conducting contests and sweepstakes [1.1].

According to HIRS 481B-1.6, it is unlawful to offer a gift, prize, or award by means of written notice sent through the mail or by telephone with the intent to sell, lease, or rent a consumer product, or to initiate the sale, lease, or rental of a consumer product when, at the time of the offer, the consumer product and all the material terms of the sale, lease, or rental transaction, including the price, handling, shipping, delivery, or any other fee, are not clearly and conspicuously disclosed. Additionally, any offer of a prize made by means of written notice sent through the mail or by telephone shall include 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, a statement that no purchase or payment is required to win a prize or to participate in a prize promotion, and 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 [1.1].

It is also unlawful to promote a contest or sweepstakes in which some or all of the prizes may not be awarded, or to fail to award all prizes or awards offered, unless the person makes the following disclosures to each offeree in writing and in a conspicuous manner prior to the acceptance of the offeree’s entry: (A) That some or all of the prizes may not be awarded; and (B) The date or dates on which a determination of winners will be made [1.1].

Additional Requirements for Promoters

If you are a promoter, you must obtain a license from the director to promote, conduct, hold, or give mixed martial arts contests [2.1]. Additionally, if you are promoting professional boxing contests, you must provide proof of medical insurance for boxers, provide a bond to cover your obligations, and submit contracts with managers, boxers, and venues to the commission for approval [3.1]. You must also provide written reports to the director within three business days after the conclusion of every contest for which admission fees are charged and received [2.3].

Conclusion

In summary, it is legal to offer contests with non-cash prizes in Hawaii as long as the requirements outlined in HIRS 481B-1.6 are met. These requirements include clearly and conspicuously disclosing all material terms of the sale, lease, or rental transaction, providing information on the odds of winning, and disclosing that no purchase or payment is required to win. Additionally, if some or all of the prizes may not be awarded, this must be disclosed to each offeree in writing and in a conspicuous manner prior to the acceptance of the offeree’s entry. If you are a promoter, you must also obtain a license, provide proof of medical insurance for boxers, provide a bond to cover your obligations, and submit contracts with managers, boxers, and venues to the commission for approval.

Source(s):
Jurisdiction

Hawaii