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90_HB3056
720 ILCS 5/17-23 new
Amends the Criminal Code of 1961. Provides that a person
who represents to an individual that the individual has been
selected or may be eligible to receive a prize, may not
request and may not receive a payment from the individual in
any form before the individual receives a written prize
notice that contains certain information that is presented in
a specific manner. Violation is a business offense and
violation after notice of violation from the Attorney General
or a State's attorney is a Class 4 felony. Contains other
provisions.
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LRB9010528RCmb
1 AN ACT to amend the Criminal Code of 1961 by adding
2 Section 17-23.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Criminal Code of 1961 is amended by
6 adding Section 17-23 as follows:
7 (720 ILCS 5/17-23 new)
8 Sec. 17-23. Prize notices.
9 (a) Definitions. In this Section:
10 (1) "Prize" means a gift, award or other item or
11 service of value.
12 (2) "Prize notice" means a notice given to an
13 individual in this State that satisfies all of the
14 following:
15 (A) Is or contains a representation that the
16 individual has been selected or may be eligible to
17 receive a prize.
18 (B) Conditions receipt of a prize on a payment
19 from the individual or requires or invites the
20 individual to make a contact to learn how to receive
21 the prize or to obtain other information related to
22 the notice.
23 (C) "Prize notice" does not include any of the
24 following:
25 (I) A notice given at the request of the
26 individual.
27 (II) A notice informing the individual
28 that he or she has been awarded a prize as a
29 result of his or her actual prior entry in a
30 game, drawing, sweepstakes or other contest, if
31 the individual is awarded the prize stated in
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1 the notice.
2 (III) A notice given in the form of an
3 in-pack chance promotion if all of the
4 following are met:
5 (i) Participation is available, free and
6 without purchase of the package, from the
7 retailer or by mail or toll-free telephone
8 request to the sponsor for entry or for a
9 game piece.
10 (ii) The label of the promotional package
11 and any related advertising clearly states
12 any method of participation and the
13 scheduled termination date of the
14 promotion.
15 (iii) The sponsor on request provides a
16 retailer with a supply of entry forms or
17 game pieces adequate to permit free
18 participation in the promotion by the
19 retailer's customers.
20 (iv) The sponsor does not misrepresent a
21 participant's chances of winning any
22 prize.
23 (v) The sponsor randomly distributes all
24 game pieces and maintains records of
25 random distribution for at least one year
26 after the termination date of the
27 promotion.
28 (vi) All prizes are randomly awarded if
29 game pieces are not used in the promotion.
30 (vii) The sponsor provides on request of
31 a State agency a record of the names and
32 addresses of all winners of prizes valued
33 at $100 or more, if the request is made
34 within one year after the termination date
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1 of the promotion.
2 (3) "Solicitor" means a person who represents to an
3 individual that the individual has been selected or may
4 be eligible to receive a prize.
5 (4) "Sponsor" means a person on whose behalf a
6 solicitor gives a prize notice.
7 (5) "Verifiable retail value" of a prize means:
8 (A) A price at which the solicitor or sponsor
9 can demonstrate that a substantial number of the
10 prizes have been sold by a person other than the
11 solicitor or sponsor in the trade area in which the
12 prize notice is given.
13 (B) If the solicitor or sponsor is unable to
14 satisfy clause (A) of this paragraph (5), no more
15 than 1.5 times the amount the solicitor or sponsor
16 paid for the prize.
17 (b) Written prize notice required. If a solicitor
18 represents to an individual that the individual has been
19 selected or may be eligible to receive a prize, the solicitor
20 may not request, and the solicitor or sponsor may not accept,
21 a payment from the individual in any form before the
22 individual receives a written prize notice that contains all
23 of the information required under clause (c)(1) presented in
24 the manner required under clauses (c)(2) through (c)(6).
25 (c) Delivery and contents of written prize notices.
26 (1) A written prize notice shall contain all of the
27 following information presented in the manner required
28 under paragraphs (2) through (6) of this subsection (c):
29 (A) The name and address of the solicitor and
30 sponsor.
31 (B) The verifiable retail value of each prize
32 the individual has been selected or may be eligible
33 to receive.
34 (C) If the notice lists more than one prize
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1 that the individual has been selected or may be
2 eligible to receive, a statement of the odds the
3 individual has of receiving each prize.
4 (D) Any requirement or invitation for the
5 individual to view, hear or attend a sales
6 presentation in order to claim a prize, the
7 approximate length of the sales presentation and a
8 description of the property or service that is the
9 subject of the sales presentation.
10 (E) Any requirement that the individual pay
11 shipping or handling fees or any other charges to
12 obtain or use a prize.
13 (F) If receipt of the prize is subject to a
14 restriction, a statement that a restriction applies,
15 a description of the restriction and a statement
16 containing the location in the notice where the
17 restriction is described.
18 (G) Any limitations on eligibility.
19 (2) (A) The verifiable retail value and the
20 statement of odds required in a written prize notice
21 under paragraphs (1)(B) and (C) of this subsection
22 (c) shall be stated in immediate proximity to each
23 listing of the prize in each place the prize appears
24 on the written prize notice and shall be in the same
25 size and boldness of type as the prize.
26 (B) The statement of odds shall include, for
27 each prize, the total number of prizes to be given
28 away and the total number of written prize notices
29 to be delivered. The number of prizes and written
30 prize notices shall be stated in Arabic numerals.
31 The statement of odds shall be in the following
32 form: ".... (number of prizes) out of.... written
33 prize notices".
34 (C) The verifiable retail value shall be in
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1 the following form: "verifiable retail value:
2 $....".
3 (3) If an individual is required to pay shipping or
4 handling fees or any other charges to obtain or use a
5 prize, the following statement shall appear in immediate
6 proximity to each listing of the prize in each place the
7 prize appears in the written prize notice and shall be in
8 not less than 10-point boldface type: "YOU MUST PAY $....
9 IN ORDER TO RECEIVE OR USE THIS ITEM."
10 (4) The information required in a written prize
11 notice under paragraph (1)(D) of this subsection (c)
12 shall be on the first page of the written prize notice in
13 not less than 10-point boldface type. The information
14 required under paragraphs (1)(F) and (1)(G) of this
15 subsection (c) shall be in not less than 10-point
16 boldface type.
17 (5) If a written prize notice is given by a
18 solicitor on behalf of a sponsor, the name of the sponsor
19 shall be more prominently and conspicuously displayed
20 than the name of the promoter.
21 (6) A solicitor or sponsor may not do any of the
22 following:
23 (A) Place on an envelope containing a written
24 prize notice any representation that the person to
25 whom the envelope is addressed has been selected or
26 may be eligible to receive a prize.
27 (B) Deliver a written prize notice that
28 contains language, or is designed in a manner, that
29 would lead a reasonable person to believe that it
30 originates from a government agency, public utility,
31 insurance company, consumer reporting agency, debt
32 collector or law firm unless the written prize
33 notice originates from that source.
34 (C) Represent directly or by implication that
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1 the number of individuals eligible for the prize is
2 limited or that an individual has been selected to
3 receive a particular prize unless the representation
4 is true.
5 (d) Sales presentations. If a prize notice requires or
6 invites an individual to view, hear or attend a sales
7 presentation in order to claim a prize, the sales
8 presentation may not begin until the solicitor does all of
9 the following:
10 (1) Informs the individual of the prize, if any,
11 that has been awarded to the individual.
12 (2) If the individual has been awarded a prize,
13 delivers to the individual the prize or the item selected
14 by the individual under subsection (e) if the prize is
15 not available.
16 (e) Prize award required; options if prize not
17 available.
18 (1) A solicitor who represents to an individual in
19 a written prize notice that the individual has been
20 awarded a prize shall provide the prize to the individual
21 unless the prize is not available. If the prize is not
22 available, the solicitor shall provide the individual
23 with any one of the following items selected by the
24 individual:
25 (A) Any other prize listed in the written
26 prize notice that is available and that is of equal
27 or greater value.
28 (B) The verifiable retail value of the prize
29 in the form of cash, a money order, or a certified
30 check.
31 (C) A voucher, certificate, or other evidence
32 of obligation stating that the prize will be shipped
33 to the individual within 30 days at no cost to the
34 individual.
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1 (2) If a voucher, certificate, or other evidence of
2 obligation delivered under paragraph (1)(C) of this
3 subsection (e) is not honored within 30 days, the
4 solicitor shall deliver to the individual the verifiable
5 retail value of the prize in the form of cash, a money
6 order or a certified check. The sponsor shall make the
7 payment to the individual if the solicitor fails to do
8 so.
9 (f) Compliance with other laws. Nothing in this Section
10 shall be construed to permit an activity prohibited by the
11 Illinois Lottery Law.
12 (g) Penalties.
13 (1) Whoever violates this Section is guilty of a
14 business offense and may be fined an amount not to exceed
15 $5,000 for each violation.
16 (2) Whoever intentionally violates this Section is
17 guilty of a Class 4 felony. A person intentionally
18 violates this Section if the violation occurs after the
19 Attorney General or a State's Attorney has notified the
20 person by certified mail that the person is in violation
21 of this Section.
22 (h) Enforcement. The Attorney General or State's
23 Attorney may on behalf of the State:
24 (1) Bring an action for temporary or permanent
25 injunctive or other relief in any court of competent
26 jurisdiction for any violation of this Section. The court
27 may, upon entry of final judgment, award restitution when
28 appropriate to any person suffering loss because of a
29 violation of this Section if proof of that loss is
30 submitted to the satisfaction of the court.
31 (2) Bring an action in any court of competent
32 jurisdiction for the penalties authorized under
33 subsection (g).
34 (i) Private action. In addition to any other remedies, a
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1 person suffering pecuniary loss because of a violation by
2 another person of this Section may bring an action in any
3 court of competent jurisdiction and shall recover all of the
4 following:
5 (1) The greater of $500 or twice the amount of the
6 pecuniary loss.
7 (2) Costs and reasonable attorney fees.