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Can you summarize OHAC Rule 109:4-3-06?
Deceptive Acts or Trade Practices in Connection with Consumer Transactions > Prizes.
Short Summary
This legal document, found in the Ohio Administrative Code under the Attorney General’s Consumer Protection section, addresses deceptive acts or trade practices in connection with consumer transactions. It prohibits suppliers from notifying consumers or prospective consumers that they have won a prize or will receive anything of value if the receipt of the prize or thing of value is conditioned upon the consumer’s participation in a sales promotional effort or entering into a consumer transaction. The supplier must disclose, at the time of notification, that an attempt will be made to induce the consumer to undertake a monetary obligation. The market value of the prize or thing of value must also be disclosed, along with any additional conditions or requirements. The document further clarifies that a statement about observing or listening to a demonstration or promotional effort does not satisfy the disclosure requirements unless the purpose of the demonstration is clearly stated. The document provides an example of a violation where a free vacation is offered in connection with the purchase of encyclopedias, but the consumer is required to observe a sales presentation for real estate during the vacation. It states that such an offer is an attempt to induce the consumer to undertake a monetary obligation, even though the sale of encyclopedias is not a consumer transaction. The document also prohibits suppliers from falsely notifying consumers that they have won a prize or will receive anything of value, or that they have been selected or eligible to win a prize or receive anything of value if the receipt of the prize or thing of value is conditioned upon the payment of certain charges. In such cases, the supplier must clearly disclose all conditions necessary to win the prize or receive anything of value.
Whom does it apply to?
Suppliers engaging in consumer transactions
What does it govern?
Deceptive Acts or Trade Practices in Connection with Consumer Transactions
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Not specified.
Jurisdiction
Ohio