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

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Non-Cash Prizes in Indiana Contests

Indiana law allows contests that involve non-cash prizes. However, there are certain requirements that must be met to ensure compliance with the law.

Disclosure of Prizes

Before a demonstration, seminar, or sales presentation begins, the promoter must inform the person of the prize, if any, the person will receive [1.1].

Statement of Verifiable Retail Value of Prizes

The notice must state the verifiable retail value of each prize a participant has been awarded or may have been awarded [1.3].

Time Prizes, Vouchers, or Certificates Given

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 [1.2].

Substitutions for Unavailable Prizes

If the prize described in this article is not available, the person who is to receive the prize shall be given the option of choosing one (1) of the following: (1) A prize of equal or greater value. (2) The verifiable retail value of the prize in cash or by a valid check. (3) A voucher, certificate, or other evidence of obligation stating that the prize will be shipped to the person within thirty (30) days at no cost to the person [3.1].

Criteria for Alcoholic Beverage Prizes

If the contest involves alcoholic beverages, there are additional requirements that must be met. A qualified organization may give away as a prize for an allowable event an alcoholic beverage that is: (1) purchased by or donated to the qualified organization by a permittee or person described in section 5 of this chapter; (2) in sealed bottles or cases; and (3) provided for consumption off the premises only [2.2]. A qualified organization that holds a license under IC 4-32.3-4 may give an alcoholic beverage as a prize at an allowable event without obtaining an alcoholic beverage permit under this title [2.3].

Conclusion

In summary, Indiana law allows contests that involve non-cash prizes, but promoters must comply with certain requirements, including disclosure of prizes, statement of verifiable retail value of prizes, time prizes, vouchers, or certificates given, and substitutions for unavailable prizes. If the contest involves alcoholic beverages, additional criteria must be met.

Source(s):
Jurisdiction

Indiana