BILL REQ. #: H-1310.1
| State of Washington | 58th Legislature | 2003 Regular Session |
Read first time 02/11/2003. Referred to Committee on Commerce & Labor.
AN ACT Relating to the regulation of sweepstakes; amending RCW 19.170.010, 19.170.020, and 19.170.050; adding new sections to chapter 19.170 RCW; creating a new section; and repealing RCW 19.170.030 and 19.170.040.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 19.170.010 and 1991 c 227 s 1 are each amended to read
as follows:
(1) The legislature finds that deceptive promotional advertising of
prizes is a matter vitally affecting the public interest for the
purpose of applying the consumer protection act, chapter 19.86 RCW.
(2) Deceptive promotional advertising of prizes is not reasonable
in relation to the development and preservation of business. A
violation of this chapter is an unfair or deceptive act in trade or
commerce for the purpose of applying the consumer protection act,
chapter 19.86 RCW, and constitutes an act of deceptive promotional
advertising.
(3) This chapter applies to a promotion offer, contest, skill
contest, or sweepstakes:
(a) ((Made)) Offered through any means to a person in Washington
for any commercial purpose;
(b) Used to induce or invite a person to come to the state of
Washington to claim a prize, attend a sales presentation, meet a
((promoter,)) sponsor, salesperson, or their agent, or conduct any
business in this state; or
(c) Used to induce or invite a person to contact by any means a
((promoter,)) sponsor, salesperson, or their agent in this state.
Sec. 2 RCW 19.170.020 and 1991 c 227 s 2 are each amended to read
as follows:
Unless the context clearly requires otherwise, the definitions in
this section apply throughout this chapter.
(1) "Contest" means any game, competition, giveaway, promotion,
promotional offer, drawing, sweepstakes, or plan that holds out or
offers to prospective participants the opportunity to receive or
compete for gifts, prizes, or gratuities, but not any activity of
licensees regulated under chapter 9.46 RCW.
(2) "No purchase necessary message" means the following statement,
set apart and in at least ten-point bold-faced type: "No purchase or
payment of any kind is necessary to enter or win this (sweepstakes or
contest)."
(3) "Official rules" means the formal printed statement of the
rules for the sweepstakes or contest, which statement shall be printed
in contrasting type face and at least ten-point type.
(4) "Person" means an individual, corporation, the state or its
subdivisions or agencies, business trust, estate, trust, partnership,
association, cooperative, or any other legal entity.
(((2))) (5) "Prize" means ((a gift, award, travel coupon or
certificate, free item, or any other item offered in a promotion that
is different and distinct from the goods, service, or property promoted
by a sponsor. "Prize" does not include an item offered in a promotion
where all of the following elements are present:)) cash or an item or service of monetary value that is offered
or awarded to a person in a real or purported sweepstakes or contest.
(a) No element of chance is involved in obtaining the item offered
in the promotion;
(b) The recipient has the right to review the merchandise offered
for sale without obligation for at least seven days, and has a right to
obtain a full refund in thirty days for the return of undamaged
merchandise;
(c) The recipient may keep the item offered in the promotion
without obligation; and
(d) The recipient is not required to attend any sales presentation
or spend any sum in order to receive the item offered in the promotion.
(3) "Promoter" means a person conducting a promotion.
(4) "Promotion" means an advertising program, sweepstakes, contest,
direct giveaway, or solicitation directed to specific named
individuals, that includes the award of or chance to be awarded a
prize.
(5)
(6) "Represent" and "representation" includes express statements
and the implications and inferences that would be drawn from those
statements, taking into account the context in which the representation
is made, including, but not limited to, emphasis, font, size, color,
location, and presentation of the representation and any qualifying
language. If the representation is made on or visible through a
mailing envelope, the context in which the representation is to be
considered, including any qualifying language, shall be limited to that
which is visible without opening the mailing envelope.
(7) "Offer" means a written notice delivered by hand, mail,
electronic mail, or other ((print)) medium offering goods, services, or
property made as part of a ((promotion)) contest to a person based on
a representation that the person may be awarded, has been awarded, or
will be awarded, a prize.
(((6))) (8) "Specially selected" means a representation that a
person is a winner, a finalist, in first place or tied for first place,
or otherwise among a limited group of persons with an enhanced
likelihood of receiving a prize.
(9) "Sponsor" means a person who conducts a contest or a person on
whose behalf a ((promotion)) contest is conducted to promote or
advertise goods, services, or property of that person, or a person who
offers, by means of an offer, a prize to another person in this state
in conjunction with any real or purported sweepstakes or contest that
requires or allows, or creates the impression of requiring or allowing,
the person to purchase any goods or services or pay any money as a
condition of receiving, or in conjunction with allowing the person to
receive, use, compete for, or obtain a prize or information about a
prize.
(10) "Sweepstakes" means any competition, giveaway, drawing, plan,
or other selection process or other enterprise or promotion in which
anything of value is awarded to participants by chance or random
selection that is not otherwise unlawful under other provisions of law,
but not any activity of licensees regulated under chapter 9.46 RCW.
(((7))) (11) "Simulated check" means a document that is not
currency or a check, draft, note, bond, or other negotiable instrument
but has the visual characteristics thereof. "Simulated check" does not
include a nonnegotiable check, draft, note, or other instrument that is
used for soliciting orders for the purchase of checks, drafts, notes,
bonds, or other instruments and that is clearly marked as a sample,
specimen, or nonnegotiable.
(((8))) (12) "Continuing obligation check" means a document that is
a check, draft, note, bond, or other negotiable instrument that, when
cashed, deposited, or otherwise used, imposes on the payee an
obligation to enter into a loan transaction. This definition does not
include checks, drafts, or other negotiable instruments that are used
by consumers to take advances on revolving loans, credit cards, or
revolving credit accounts.
(((9))) (13) "Verifiable retail value" means:
(a) A bona fide price at which a ((promoter or)) sponsor can
demonstrate that a substantial number of prizes have been sold at
retail in the local market by a person other than the ((promoter or))
sponsor; or
(b) If the prize is not available for retail sale in the local
market, the retail fair market value in the local market of an item
substantially similar in each significant aspect, including size,
grade, quality, quantity, ingredients, and utility; or
(c) If the value of the prize cannot be established under (a) or
(b) of this subsection, then the prize may be valued at no more than
three times its cost to the ((promoter or)) sponsor.
(((10))) (14) "Financial institution" means any bank, trust
company, savings bank, savings and loan association, credit union,
industrial loan company, or consumer finance lender subject to
regulation by an official agency of this state or the United States,
and any subsidiary or affiliate thereof.
(15) "Skill contest" means a puzzle, game competition, or other
skill contest in which:
(a) A prize is awarded or offered;
(b) The outcome depends predominantly on the skill of the
contestant; and
(c) A purchase, payment, or donation is required, or implied to be
required, to enter the skill contest.
(16) "Covered communication" includes any direct mail, electronic
mail, or other communication made by a medium that offers an
opportunity to consumers in this state to enter a skill contest, refers
to an opportunity to enter a skill contest, or is used during the
course of a skill contest.
NEW SECTION. Sec. 3 A new section is added to chapter 19.170 RCW
to read as follows:
(1) Make any false or misleading statements or representations in
or as a part of any contest;
(2) Require a person to pay the sponsor or any other person money
or any other consideration as a condition of awarding the person a
prize, or as a condition of allowing the person to receive, use,
compete for, or obtain a prize or information about a prize. These
payments include but are not limited to shipping fees, deposits,
handling fees, payment for one item in order to receive another at no
charge, or the purchase of another item or the expenditure of funds in
order to make meaningful use of the item awarded in the promotion. The
payment of any applicable state or federal taxes by a recipient
directly to a government entity is not a violation of this section;
(3) Represent that a person has won or unconditionally will be the
winner of a prize or use language that may lead a person to believe he
or she has won a prize, unless the person will be given the prize
without obligation;
(4) Represent that an item is a prize or that a person has been
selected by chance if all or substantially all of the recipients of an
offer in a contest receive items of the same or similar value;
(5) Represent that a recipient was specially selected unless it is
true and not misleading;
(6) Subject sweepstakes or contest entries not accompanied by an
order for products or services to any disability or disadvantage in the
winner selection process to which an entry accompanied by an order for
products or services would not be subject;
(7) Represent that an entry in a sweepstakes or contest accompanied
by an order for products or services will be eligible to receive
additional prizes or be more likely to win than an entry not
accompanied by an order for products or services, or that an entry not
accompanied by an order for products or services will have a reduced
chance of winning a prize in the sweepstakes or contest;
(8) Represent that a person will have an increased chance of
receiving a prize by making multiple or duplicate purchases, payments,
or donations, or by entering a sweepstakes or contest more than one
time;
(9) Represent that a person is being notified a second, subsequent,
or final time of the opportunity to receive or compete for a prize,
unless the representation is true;
(10) Represent that an offer is urgent or otherwise convey an
impression of urgency by use of description, narrative copy, phrasing
on a mailing envelope, or similar method, unless there is a limited
time period in which the recipient must take some action to claim or be
eligible to receive a prize, and the date by which such action is
required appears immediately adjacent to each representation of urgency
in the same type size and boldness as each representation of urgency;
(11) Deliver, or cause to be delivered, an offer that:
(a) Simulates or falsely represents that it is a document
authorized, issued, or approved by any court, official, or agency of
the United States or any state or by any lawyer, law firm, or insurance
or brokerage company, certified public accountant, or notary public; or
(b) Creates a false impression as to its source, authorization, or
approval;
(12) Represent that an offer is being delivered by any method other
than bulk mail unless that is the case, or otherwise misrepresent the
manner in which the offer is delivered;
(13) Misrepresent in any manner the likelihood or odds of winning
any prize or misrepresent in any manner the rules, terms, or conditions
of participation in a sweepstakes or contest;
(14) Require the person to purchase insurance as a condition of
claiming a prize;
(15) Include a prize in an offer when the sponsor knows or has
reason to know that the prize will not be available in a sufficient
quantity based upon the reasonably anticipated response to the offer;
(16) Represent that a person has won a prize if there are any
conditions that must be met or events that must occur before the person
is a winner; or
(17) Represent that a person may be or may become a winner of a
prize, characterize the person as a possible winner of a prize, or
represent that the person will, upon the satisfaction of some condition
or the occurrence of some event or other contingency, become the winner
of a prize, unless the material conditions necessary to make the
representation truthful are disclosed. Such disclosures must be
presented in the same type face, size, color, style, and font and
presented in such a manner that they are an integral part of the
representation and not separated from the remainder of the
representation by intervening words, graphics, colors, or excessive
blank space.
NEW SECTION. Sec. 4 A new section is added to chapter 19.170 RCW
to read as follows:
(1) That the recipient has not won a prize, unless the person will
receive the prize without meeting any conditions;
(2) The no purchase necessary message;
(3) The verifiable retail value of each prize:
(a) Stated in United States dollars, indicated in arabic numerals,
and preceded by a dollar sign; and
(b) Printed immediately adjacent to the first identification of the
prize to which it refers and in the same type size and boldness as the
reference to the prize;
(4) The odds of receiving each prize:
(a) This statement must include, for each prize, the total number
of prizes to be given away and the estimated odds of winning each prize
based upon the following formula: ". . . (number of prizes) out of
. . . (number of) offers distributed"; and
(b) This information shall be presented immediately adjacent to the
first identification of the prize to which it refers and in the same
type size and boldness as the reference to the prize;
(5) The name or names of each sponsor, the street address of each
sponsor's principal place of business, and the street address at which
each sponsor may be contacted;
(6) Any restrictions on any prize, with a complete description of
the restriction. If travel is awarded as any part of any prize, any
conditions or restrictions on travel dates, travel times, classes of
travel, airlines, accommodations, travel agents, or tour operators;
(7) The official rules for the sweepstakes or contest, which must
include:
(a) A clear and conspicuous disclosure of the odds for winning each
prize;
(b) The number of rounds or levels that may be necessary to
complete the contest and determine winners;
(c) The date or dates on or before which the contest will terminate
and upon which all prizes will be awarded;
(d) The method of determining prize winners in the case of a tie;
and
(e) All rules, regulations, terms, and conditions of the contest;
(8) The deadline for submission of an entry to be eligible to win
each prize; and
(9) If a ticket, the offer itself, a token, number, lot, or other
device used to determine winners in a particular promotion must be
presented to a sponsor, in order to claim or redeem a prize. This
condition must be disclosed clearly on the first page of the offer.
NEW SECTION. Sec. 5 A new section is added to chapter 19.170 RCW
to read as follows:
(a) Represent, in a covered communication, that the recipient has
won, is the winner of, or will be the winner of, a skill contest
unless:
(i) The recipient has won or will be determined to be the winner;
(ii) The representation is not false, deceptive, or misleading;
(iii) The prize and its value are clearly and conspicuously
disclosed in the representation itself; and
(iv) Any action that the recipient must take to receive or obtain
the prize is set forth in readily understandable terms and the action
does not affect the recipient's entitlement to receive or obtain the
prize;
(b) Represent, in a covered communication, that the recipient may
already be or may become a winner, characterize the recipient as a
possible winner, or represent that the recipient will, upon the
satisfaction of some condition or the occurrence of some event or other
contingency, become the winner of a skill contest, unless the sponsor
or promoter of a skill contest clearly and conspicuously discloses:
(i) That a winner of the contest has not yet been determined; and
(ii) All conditions necessary to win the contest, so as to render
the representation fair, true, and not misleading;
(c) Request, in a covered communication, information or action from
the recipient that would be of use or is represented as being of use in
the event the recipient has won a prize, unless the recipient has won
a prize and such information or action is necessary to deliver the
prize;
(d) Use, in a covered communication, a personalized simulated check
or other payment device, such as a depiction of a deposit slip or
electronic funds transfer receipt, to represent any prize;
(e) Misrepresent the likelihood or chance of winning a skill
contest or prize;
(f) Represent, in a covered communication, that skill contest prize
awards are or may be distributed to anyone other than to a winner of a
skill contest;
(g) Misrepresent, in a covered communication, that its employees or
others acting on its behalf, real or fictitious, have personal feelings
concerning a personal relationship with, or will take or refrain from
taking any action relating to, the recipient of the communication;
(h) Misrepresent that a recipient has an advantage over other
contestants;
(i) Misrepresent, on the outside of the envelope, the method of
delivery of any covered communication, including, but not limited to,
misrepresenting that the delivery is being made by courier, overnight
mail, special delivery, express mail, hand delivery, registered or
certified mail, or by any other form of expedited delivery, or
otherwise misrepresenting the urgency with which it is sent;
(j) Use stamps, labels, symbols, bar codes, or other elements that
resemble indicia or forms used by an entity such as the United States
postal service, a government agency, a private courier, delivery
service, or a financial institution, unless the element is genuine and
required by such other entity;
(k) Make reference to any law or regulation, pertaining to the use
of the mail or to the operation of a skill contest, that is visible on
the unopened envelope in which a covered communication is contained,
unless such statement and such placement is required by law;
(l) Misrepresent the number of persons eligible for a skill contest
or a prize, any limitations on eligibility for a skill contest or a
prize, or the method by which the recipient was selected to receive an
offer to enter a skill contest or to compete for a prize;
(m) Misrepresent that the recipient:
(i) Has a better chance of winning a skill contest than other
participants who are at the same stage of the contest;
(ii) Has advanced beyond participants who are or will be at the
same stage in the contest; or
(iii) Has a status in the skill contest that is superior to other
participants who are or will be at the same stage;
(n) Represent that each participant has an equal aptitude for
winning a skill contest;
(o) Misrepresent that:
(i) A recipient has advanced in a skill contest;
(ii) That the field of contestants in a skill contest has been
winnowed; or
(iii) That a recipient's status in a skill contest has otherwise
improved in a substantive way;
(p) Represent that a recipient has advanced in a skill contest,
that the field of contestants in a skill contest has been winnowed, or
that a recipient's status in a skill contest has otherwise improved in
a substantive way, such as by representing that a recipient is "tied"
for any position or status in a skill contest, is now eligible for a
round subsequent to the entry round of a skill contest, or is
participating in or eligible for a tie-breaker round, unless the
representation also clearly and conspicuously discloses:
(i) The fact that there are many others who hold the same status as
the recipient;
(ii) The manner in which the recipient's status has improved; and
(iii) All facts necessary to make the representation truthful and
not misleading;
(q) Represent that a recipient's likelihood of winning a skill
contest is based, in whole or in part, on chance or luck;
(r) Represent that a recipient's likelihood of winning a skill
contest is based on anything other than the individual effort and
skills required to compete successfully in the skill contest;
(s) Represent, in a covered communication, that the recipient of
the communication has characteristics or skills that indicate an
enhanced chance of winning a skill contest, such as characteristics or
skills that are similar to the characteristics or skills of past
winners in a skill contest, unless the recipients have objectively
demonstrated characteristics or skills needed to win the contest;
(t) Misrepresent the degree of skill, knowledge, or ability
required to compete effectively for winning a prize;
(u) Use any writing that simulates or resembles a legal document
such as an affidavit, certification, release, or legal notice;
(v) Represent that a recipient is being notified a second or
subsequent time of the opportunity to compete for a prize, unless the
representation is true;
(w) Represent that a recipient is being notified a final time of an
opportunity to compete for a prize, unless a previous notification of
that opportunity was sent to the recipient and no further opportunity
to compete in that contest will be offered;
(x) Misrepresent a prize nor represent separate or multiple contest
or game prizes as a single prize;
(y) Solicit any charge, fee, or bonus fee in connection with a
skill contest, or any portion thereof, that is not clearly and
conspicuously disclosed in the official rules;
(z) Represent that an entrant's chance of receiving a prize or the
amount of the prize will increase by submitting identical entries in
the same contest, except this will not preclude the sponsor of a skill
contest from returning those entry and bonus fees directly related to
the person's submission of the winning entry;
(aa) Represent that any deadline applies to the return of an entry
in any level of a skill contest other than the date by which all
entries must be received. Nothing in this subsection prevents the
sponsor of a skill contest from making general requests for prompt
responses that do not specify any deadlines;
(bb) Offer in a skill contest any puzzle or other game that does
not require bona fide skill to complete correctly. If the sponsor of
a skill contest offers skill contests consisting of multiple levels or
rounds, the sponsor of a skill contest shall ensure that the level of
difficulty in each level or round increases in a systematic and
consistent manner. If fifteen percent or more of the contestants are
eliminated at the initial or entry level, the requisite skill will be
presumed, provided that the fifteen-percent elimination rate can be
demonstrated by empirical data. In subsequent rounds, the sponsor of
a skill contest shall further be entitled to the presumption of bona
fide skill if they can demonstrate that at least twice the percentage
of contestants fail to advance from that round as failed to reach the
round in question;
(cc) Knowingly sell, rent, exchange, transfer, or otherwise furnish
to, or purchase from other persons, customer age or telephone contact
information or financial data disclosed in connection with a skill
contest. Also, the sponsor of a skill contest shall not provide list
renters the ability to select names based on customer age, telephone
contact information, or financial data. For purposes of this
subsection, financial data includes credit card numbers, bank account
numbers, other payment device numbers, and a customer's purchase
history, except that the sponsor or promoter of a skill contest may
disclose dollars spent per customer within ninety days prior to the
date such information is furnished or purchased;
(dd) Provide, over the telephone, answers or assistance in
completing the puzzles offered in a skill contest, beyond explaining
the skill contest rules;
(ee) Make customer lists available to others unless such list
rental agreements between the sponsor or promoter of a skill contest
and list renters prohibit telematching the names or addresses on the
customer lists and using such lists for telephonic solicitation of any
kind;
(ff) Make telephone numbers of customers available to others, offer
lists of customers' names or addresses in segments based on the
customers' ages, or offer any names or addresses of customers;
(gg) Mail or otherwise make a covered communication to a person who
has made payments of one thousand five hundred dollars or more in
response to covered communications within a twelve-month period
beginning with the first day of the first month of the calculation and
ending with the date on which the payment is made. The sponsor of a
skill contest shall not mail or otherwise make a covered communication
to any person who has made, in any time period, payments of three
thousand five hundred dollars or more in response to a covered
communication; and
(hh) Represent, in a covered communication or by any other means,
that its representations, solicitations, practices, goods, or services
have the sponsorship or approval of any court or the attorney general
of any state or any other judicial or governmental authority unless
expressly authorized or required by such authority.
(2) The sponsor of a skill contest shall:
(a) Maintain a do not contact list. The do not contact list is an
accurate and up-to-date list of all persons who request to be removed
from the sponsor of a skill contest's mailing list. The sponsor of a
skill contest shall provide, in covered communications, a clear and
conspicuous notice of the procedure by which a recipient's name may be
removed from the sponsor of a skill contest's active mailing list. In
maintaining the do not contact list, the sponsor of a skill contest:
(i) Shall accept do not contact requests made by mail to an address
identified in the offer. The sponsor of a skill contest shall accept
do not contact requests made directly by the recipient or made on
behalf of the recipient by a guardian, conservator, primary caregiver,
family member, legal representative, or by the state attorney general;
(ii) May require that the requestor verify the do not contact
request in writing. The sponsor of a skill contest shall not include
in any other communications inducements to request removal from the do
not contact list;
(iii) Shall add to the do not contact list the name and address
provided in any such request together with all variations of the name
and address that the sponsor has, with reasonable diligence, identified
or identifies in the future as being the same customer. The sponsor of
a skill contest shall maintain a record of all do not contact requests
in such form or forms as shall permit the permanent suppression of such
names and addresses from future covered communications;
(iv) Shall not accept any entries from any persons having the same
name and address that appear on its do not contact list. The sponsor
of a skill contest shall exclude all names and addresses on the do not
contact list from all lists of names and addresses used to select
recipients for covered communications, other than billing and
collections communications for open orders and customer service
communications that contain no promotional material, and from all lists
of names and addresses made available for use by others for marketing
purposes. The sponsor of a skill contest shall also exercise
reasonable diligence to ensure that the names and addresses on its do
not contact list are suppressed from each and every new list obtained,
rented, or used; and
(v) Shall ensure that the do not contact request is given effect by
forty-five days after receipt of the request and shall keep the request
in effect until the sponsor receives notice to the contrary from the
recipient. However, in any case in which the original request was made
by a legal representative of the person or the state attorney general,
the request shall be changed only upon notice from the same or another
legal representative or the attorney general, respectively;
(b) In the case of a tie, have the option to split prizes among the
finalists, provided that no winning entrant shall be awarded a greater
share of the prize than any other winning entrant, regardless of
whether an entrant submitted more than one winning entry. The sponsor
of a skill contest may engage in additional rounds in order to
establish one final winner provided that they do not charge fees beyond
those disclosed in the initial offer and such additional rounds have
been clearly and conspicuously disclosed in the rules of the initial
and all subsequent skill contest offers; and
(c) Include in each covered communication that requires, appears to
require, solicits, or appears to solicit, the payment of any money
related to a skill contest or game or contains an opportunity to enter
a skill contest, game, or round, including, but not limited to, bonus
opportunities, a separate insert, devoid of any marketing copy, titled
"Official Contest Rules, Contest Facts, and Refund Policy." The stand-alone insert shall contain the following three sections:
(i) The contest rules, appearing in at least ten-point type and
containing the following material facts set forth in a clear and
conspicuous manner and in separately enumerated paragraphs that are
divided by the equivalent of a line of clear space. The contest rules
shall include:
(A) The name of the skill contest and game, if applicable. Nothing
in this subsection prohibits a single set of contest rules from
covering multiple games as long as it clearly and conspicuously
discloses that fact;
(B) The maximum number of rounds or levels, if the skill contest
has more than one round or level and a statement to the effect that one
or more additional rounds may be necessary to produce the final winner
or winners, if such is the case;
(C) The date the final winner or winners will be determined;
(D) A complete and accurate description of all fees charged for
participation in the skill contest, and a complete and accurate
description of all fees requested for optional bonus prize amounts.
Such description shall include both the amount and the purpose of each
fee required or requested during the skill contest. The paragraph
containing this disclosure shall begin with the title "Required and
Optional Fees" and shall appear in a font that is more readily
noticeable than the body of the paragraph;
(E) If the skill contest involves multiple rounds of increasing
difficulty, a representative example illustrative of the skills
required to compete in the contest offered, including an actual
depiction of a final tie-breaking round and a bona fide winning entry
from a similar or identical skill contest with a description of the
instructions for accurately completing that puzzle. The word "SAMPLE"
may be superimposed over the examples but not in a manner that would
disguise or mislead as to the degree of difficulty posed by the final
tie-breaker round or skill necessary to complete a winning entry;
(F) The estimated number and percentage of contestants expected to
successfully complete each round of the skill contest relative to the
original number of contestants anticipated and the estimated number of
contestants expected to advance to the next round followed by the
percentage the number of successful entrants represents of the total
entrants into each round of the skill contest. This disclosure shall
provide the required information in a uniform and consistent manner.
The paragraph containing this disclosure shall begin with the title
"Estimated Number of Contestants" and shall appear in a font that is
more readily noticeable than the body of the paragraph;
(G) The identity of and a description of the qualifications of the
judges and their relationship to the sponsor of a skill contest;
(H) The method used in judging;
(I) The name and address of the sponsor offering the skill contest,
or the sponsor's agent, if applicable;
(J) A complete and accurate description of prizes;
(K) A description of all material restrictions;
(L) A description of the sponsor's refund policy;
(M) A complete, accurate, and nonmisleading description of the
effects of multiple entries, at the initial and any other tie-breaker
rounds, by participants;
(N) The historical or anticipated percentage of entry fees that are
paid out in prizes or awards;
(O) The manner in which any prize will be paid and a disclosure if
multiple winning entries by a single contestant will not increase the
amount an individual contestant may win; and
(P) The telephone number and address where the sponsor's customer
service department can be contacted, and the office hours for the
customer service department.
(ii)(A) All covered communications shall contain a stand-alone
insert in twelve-point bold-face type that discloses the contest facts.
The insert must contain the following statements that must be placed in
a box entitled "Contest Facts" and such title must be in at least
fourteen-point bold-face type:
(I) This is a contest of skill. This contest includes several
rounds of puzzles that require mathematical, verbal, or other skills.
Each round will be substantially more challenging and difficult to
solve;
(II) The winner will not be determined until the end of the
contest. To win this contest you must receive the highest score in the
final round of puzzles. In the event of a tie, all winners will share
the prize equally;
(III) This contest will end on (date). See contest rules for the
entry deadline; and
(IV) This is not a sweepstakes. There is no "chance" or "luck"
involved in this contest;
(B) The contest facts box shall also include, below the statements
in (c)(ii)(A) of this subsection, a disclosure of the individual and
distinct name of the skill contest offered, the identity of the prize
or prizes offered in each game, the number of rounds involved in the
contest, the total amount of all required fees to participate and win
the contest, and the ending date of the contest by which time the
winner will be determined. Such information shall be presented in a
grid format, in at least ten-point type; and
(C) The contest facts box shall contain no matter other than matter
required by (c)(ii) of this subsection and shall not be overlaid with
any graphic design, text, or color from outside the box. The
background of the box shall be in a color or shade that contrasts with
the text in the box in such a manner that the text is clearly distinct
from the background and easily read.
(iii) The refund policy, appearing in at least ten-point type shall
be prominently presented as a separate disclosure from the contest
rules and the contest facts. Each sponsor's refund policy shall be as
follows:
(A) Regardless of the reason for the request, the sponsor of a
skill contest shall provide any customer a full refund for any open
contest before that customer is notified that a losing entry has been
submitted; and
(B) If a refund request is accompanied by any information
indicating that a consumer has not fully understood, has acted
irresponsibly or inappropriately, or is confused or otherwise lacks the
ability to knowingly and voluntarily enter a skill contest, the sponsor
or promoter of a skill contest shall deliver a full refund for all
contests, even if the contests are closed, and even if the consumer is
notified of an incorrect entry. When a customer is given a refund
pursuant to this section he or she shall automatically be put on a do
not contact list and shall not be generated any new covered
communications. The name and address of such customer shall not be
rented or sold to others.
NEW SECTION. Sec. 6 A new section is added to chapter 19.170 RCW
to read as follows:
(2) If a rain check issued in lieu of a prize cannot be honored
within thirty days, the sponsor must award the cash value for the
verifiable retail value of a prize.
(3) A rain check must include the following language in a
conspicuous statement of recipients' rights printed in type at least as
large as the typeface used in the standard text of the offer:
"If you receive a rain check in lieu of the prize, you are entitled by law to receive the prize, an item of equal or greater value, or the cash equivalent of the offered prize within thirty days of the date on which you claimed the prize."
NEW SECTION. Sec. 7 A new section is added to chapter 19.170 RCW
to read as follows:
(2) Before a demonstration, seminar, or sales presentation begins,
the sponsor must inform the person of the prize, if any, the person
will receive.
(3) A prize or a voucher, certificate, or other evidence of
obligation given instead of a prize must be given to a person at the
time the person is informed of the prize, if any, the person will
receive.
(4) The offer, or a copy of the offer, must be returned to the
person receiving the prize at the time the prize is awarded.
NEW SECTION. Sec. 8 A new section is added to chapter 19.170 RCW
to read as follows:
Sec. 9 RCW 19.170.050 and 1991 c 227 s 5 are each amended to read
as follows:
(1) No person may produce, advertise, offer for sale, sell,
distribute, or otherwise transfer for use in this state a simulated
check unless the document bears the phrase "THIS IS NOT A CHECK,"
diagonally printed in type at least as large as the predominant
typeface in the simulated check on the front of the check itself.
(2) No person, other than a financial institution, may produce,
advertise, offer for sale, sell, distribute, or otherwise transfer for
use in this state a continuing obligation check. A financial
institution may not issue a continuing obligation check unless the
document bears the phrase "THIS IS A LOAN" or "CASHING THIS REQUIRES
REPAYMENT," diagonally printed in type at least as large as the
predominant typeface in the continuing obligation check on the front of
the check itself.
NEW SECTION. Sec. 10 The following acts or parts of acts are
each repealed:
(1) RCW 19.170.030 (Disclosures required) and 1999 c 31 s 1 & 1991
c 227 s 3; and
(2) RCW 19.170.040 (Disclosures -- Prizes awarded -- Rain checks) and
1991 c 227 s 4.
NEW SECTION. Sec. 11 Captions used in this act are not part of
the law.