Introduced Version






HOUSE BILL No. 1356

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 24-8.

Synopsis: Sweepstakes regulation. Adds sweepstakes, contests, and prize giveaways to the definition of "promotion" for purposes of the law regulating promotional gifts and contests. Requires disclaimers of actual winning odds for promotions that make certain representations to the person receiving the promotion. Provides for disclaimer statements for promotions that do not require a purchase. Provides for disclaimer statements for promotions for which a purchase does not increase the likelihood of winning. Repeals a provision exempting certain types of promotions from certain notice requirements.

Effective: July 1, 2001.





Duncan




    January 11, 2001, read first time and referred to Committee on Public Policy, Ethics and Veterans Affairs.







Introduced

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE BILL No. 1356



    A BILL FOR AN ACT to amend the Indiana Code concerning promotional gifts and contests.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 24-8-2-5; (01)IN1356.1.1. -->     SECTION 1. IC 24-8-2-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 5. "Promotion" means a written notice offering:
        (1) property; or
        (2) a chance to obtain property;
to a person based on a representation that the person has been awarded or may have been awarded a prize, and includes sweepstakes, contests, and prize giveaways.
SOURCE: IC 24-8-3-5.5; (01)IN1356.1.2. -->     SECTION 2. IC 24-8-3-5.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 5.5. (a) If a promotion represents that the person:
        (1) is a winner;
        (2) is a finalist;
        (3) has been specially selected;
        (4) is in "first place"; or
        (5) is otherwise among a limited group of persons with an enhanced likelihood of receiving a prize;
the written prize notice must contain a statement of the maximum number of persons described in subdivision (1), (2), (3), (4), or (5).

     (b) The statement required under subsection (a) must be in at least 10 point boldface contrasting color type on the first page of the promotion.
SOURCE: IC 24-8-3-7.5; (01)IN1356.1.3. -->     SECTION 3. IC 24-8-3-7.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 7.5. (a) If a promotion offers a prize for which the purchase of goods or services is not necessary, the first page of the notice must clearly state that purchase is not necessary.
    (b) Disclosure must be made by using the following statement:
    "No purchase is necessary to enter this promotion.".
    (c) The disclosure statement must be in at least 10 point boldface contrasting color type.

SOURCE: IC 24-8-3-7.6; (01)IN1356.1.4. -->     SECTION 4. IC 24-8-3-7.6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]: Sec. 7.6. (a) If a promotion offers a prize for which the purchase of goods or services does not enhance the likelihood of receiving a prize, the first page of the notice must clearly state that a purchase does not enhance the likelihood of receiving a prize.
    (b) Disclosure must be made by using the following statement:
    "A purchase does not increase your chance of winning.".
    (c) The disclosure statement must be in at least 10 point boldface contrasting color type.

SOURCE: IC 24-8-3-10; (01)IN1356.1.5. -->     SECTION 5. IC 24-8-3-10 IS REPEALED [EFFECTIVE JULY 1, 2001].