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92_SB0797sam001
LRB9200606LDcsam
1 AMENDMENT TO SENATE BILL 797
2 AMENDMENT NO. . Amend Senate Bill 797 by replacing
3 the title with the following:
4 "AN ACT concerning prizes and gifts."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 1. Short title. This Act may be cited as the
8 Prizes and Gifts Act.
9 Section 5. Legislative intent. The General Assembly
10 finds that deceptive promotional advertising of prizes is a
11 matter vitally affecting the public interest in this State.
12 Section 10. Definitions. As used in this Act:
13 "Catalog seller" means an entity (and its subsidiaries)
14 or a person at least 50% of whose annual revenues are derived
15 from the sale of products sold in connection with the
16 distribution of catalogs of at least 24 pages, which contain
17 written descriptions or illustrations and sale prices for
18 each item of merchandise and which are distributed in more
19 than one state with a total annual distribution of at least
20 250,000.
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1 "Person" means a corporation, partnership, limited
2 liability company, sole proprietorship, or natural person.
3 "Prize" means a gift, award, or other item or service of
4 value that is offered or awarded to a participant in a real
5 or purported contest, competition, sweepstakes, scheme, plan,
6 or other selection process.
7 "Retail value" of a prize means:
8 (1) a price at which the sponsor can substantiate
9 that a substantial quantity of the item or service
10 offered as a prize has been sold to the public; or
11 (2) if the sponsor is unable to satisfy the
12 requirement in subdivision (1), no more than 3 times the
13 amount the sponsor paid for the prize in a bona fide
14 purchase from an unaffiliated seller.
15 "Sponsor" means a person that requires payment of money
16 as a condition of awarding another person a prize, or as a
17 condition of allowing another person to receive, use, compete
18 for, or obtain information about a prize, or that creates the
19 reasonable impression that such a payment is required.
20 Section 15. Application of Act. Except as otherwise
21 provided in this Act, this Act applies only to a written
22 promotional offer that is:
23 (1) made to a person in this State;
24 (2) used to induce or invite a person to come to
25 this State to claim a prize, attend a sales presentation,
26 meet a promoter, sponsor, salesperson, or agent, or
27 conduct any business in this State; or
28 (3) used to induce or invite a person to contact by
29 any means a promoter, sponsor, salesperson, or agent in
30 this State.
31 Section 20. No payment required. No sponsor may require
32 a person in this State to pay the sponsor money as a
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1 condition of awarding the person a prize, or as a condition
2 of allowing the person to receive, use, compete for, or
3 obtain information about a prize.
4 Section 25. Disclosures required. A written promotional
5 offer must contain each of the following in a prominent
6 statement at the onset of the offer:
7 (1) the true name or names of the sponsor and the
8 address of the sponsor's actual principal place of
9 business;
10 (2) the retail value of each prize the person
11 receiving the notice has been selected to receive or may
12 be eligible to receive;
13 (3) a disclosure that no purchase is necessary to
14 enter such written promotional offer;
15 (4) a disclosure that a purchase will not improve
16 the person's chances of winning with an entry;
17 (5) a statement of the person's odds of receiving
18 each prize identified in the notice;
19 (6) any requirement that the person pay shipping or
20 handling fees or any other charges to obtain or use a
21 prize, including the nature and amount of the charges;
22 (7) if receipt of the prize is subject to a
23 restriction, a description of the restriction;
24 (8) any limitations on eligibility; and
25 (9) if a sponsor represents that the person is a
26 "winner", is a "finalist," has been "specially selected",
27 is in "first place," or is otherwise among a limited
28 group of persons with an enhanced likelihood of receiving
29 a prize, the written prize notice must contain a
30 statement of the maximum number of persons in the group
31 or purported group with this enhanced likelihood of
32 receiving a prize.
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1 Section 30. Prize award required. A sponsor who
2 represents that a person has been awarded a prize shall, not
3 later than 30 days after making the representation, provide
4 the person with:
5 (1) the prize;
6 (2) a voucher, certificate, or other document
7 giving the person the prize; or
8 (3) the retail value of the prize, as stated in the
9 written prize notice, in the form of cash, a money order,
10 or a certified check.
11 Section 32. Advertising media exempt. Nothing in this
12 Act creates liability for acts by the publisher, owner,
13 agent, or employee of a newspaper, periodical, radio station,
14 television station, cable television system, or other
15 advertising medium arising out of the publication or
16 dissemination of a solicitation, notice, or promotion
17 governed by this Section unless the publisher, owner agent,
18 or employee had knowledge that the solicitation, notice, or
19 promotion violated the requirements of this Section, or had a
20 financial interest in the solicitation, notice, or promotion.
21 Section 35. Exemptions. This Act does not apply to
22 solicitations or representations in connection with:
23 (1) the sale or purchase of books, recordings,
24 video cassettes, periodicals, and similar goods through
25 a membership group or club that is regulated by the
26 Federal Trade Commission under Code of Federal
27 Regulations, Title 16, part 425.1, concerning the use of
28 negative option plans by sellers in commerce;
29 (2) the sale or purchase of goods ordered through a
30 contractual plan or arrangement such as a continuity
31 plan, subscription arrangement, or a single sale or
32 purchase series arrangement under which the seller ships
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1 goods to a consumer who has consented in advance to
2 receive the goods and after the receipt of the goods is
3 given the opportunity to examine the goods and to receive
4 a full refund of charges for the goods upon return of the
5 goods in an undamaged condition;
6 (3) sales by a catalog seller;
7 (4) the State lottery created and regulated under
8 the Illinois Lottery Law;
9 (5) the sale or purchase of membership camping
10 contracts in accordance with the Illinois Membership
11 Campground Act; or
12 (6) the sale or purchase of time-shares created and
13 regulated under the Illinois Real Estate Time-Share Act.
14 Section 40. Violations.
15 (a) Nothing in this Act may be construed to permit an
16 activity otherwise prohibited by law.
17 (b) A consumer who suffers loss by reason of any
18 intentional violation of any provision of this Act may bring
19 a civil action to enforce that provision. A consumer who is
20 successful in such an action shall recover the greater of
21 $500 or twice the amount of the pecuniary loss, reasonable
22 attorney's fees, and court costs incurred by bringing such
23 action.
24 (c) If the Attorney General or State's Attorney has
25 reason to believe that any person is using, has used, or is
26 about to use any method, act, or practice that violates this
27 Act, and that proceedings would be in the public interest, he
28 or she may bring an action in the name of the People of the
29 State of Illinois against the person to restrain by
30 preliminary or permanent injunction the use of the method,
31 act, or practice. The court, in its discretion, may exercise
32 all powers necessary, including but not limited to:
33 injunction; revocation, forfeiture, or suspension of license
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1 or other authority of any person to do business in this
2 State; appointment of a receiver; dissolution of a domestic
3 corporation or association; suspension or termination of the
4 right of a foreign corporation or association to do business
5 in this State; and restitution. In addition to other
6 remedies, the Attorney General or State's Attorney may
7 request and the court may impose a civil penalty in a sum not
8 to exceed $50,000 against any person found by the court to
9 have engaged in any method, act, or practice that violates
10 this Act. If the court finds the method, act, or practice to
11 have been entered into with the intent to defraud, the court
12 may impose a civil penalty in a sum not to exceed $50,000 per
13 violation.
14 Section 90. Severability. If any provision of this Act
15 or the application thereof to any person or circumstance is
16 held invalid, the invalidity shall not affect other
17 provisions or applications of the Act which can be given
18 effect without the invalid provision or application and to
19 this end the provisions of this Act are severable.".