PocketLaw | Illinois Compiled Statutes

Prizes and Gifts Act.

Checkout our iOS App for a better way to browser and research.

(815 ILCS 525/1)

Sec. 1. Short title. This Act may be cited as the Prizes and Gifts Act.

(Source: P.A. 92-436, eff. 1-1-02.)

(815 ILCS 525/5)

Sec. 5. Legislative intent. The General Assembly finds that deceptive promotional advertising of prizes is a matter vitally affecting the public interest in this State.

(Source: P.A. 92-436, eff. 1-1-02.)

(815 ILCS 525/10)

Sec. 10. Definitions. As used in this Act:

"Catalog seller" means an entity (and its subsidiaries) or a person at least 50% of whose annual revenues are derived from the sale of products sold in connection with the distribution of catalogs of at least 24 pages, which contain written descriptions or illustrations and sale prices for each item of merchandise and which are distributed in more than one state with a total annual distribution of at least 250,000.

"Person" means a corporation, partnership, limited liability company, sole proprietorship, or natural person.

"Prize" means a gift, award, or other item or service of value that is offered or awarded to a participant in a real or purported contest, competition, sweepstakes, scheme, plan, or other selection process that involves an element of chance.

"Retail value" of a prize means:

(1) a price at which the sponsor can substantiate that a substantial quantity of the item or service offered as a prize has been sold to the public; or
(2) if the sponsor is unable to satisfy the requirement in subdivision (1), no more than 3 times the amount the sponsor paid for the prize in a bona fide purchase from an unaffiliated seller.

"Sponsor" means a person on whose behalf a promotion is conducted to promote or advertise goods, services, or property of that person. "Sponsor" includes a person who conducts a promotion on behalf of another sponsor.

(Source: P.A. 92-436, eff. 1-1-02.)

(815 ILCS 525/15)

Sec. 15. Application of Act. Except as otherwise provided in this Act, this Act applies only to a written promotional offer that is:

(1) made to a person in this State;
(2) used to induce or invite a person to come to this State to claim a prize, attend a sales presentation, meet a promoter, sponsor, salesperson, or agent, or conduct any business in this State; or
(3) used to induce or invite a person to contact by any means a promoter, sponsor, salesperson, or agent in this State.

(Source: P.A. 92-436, eff. 1-1-02.)

(815 ILCS 525/20)

Sec. 20. No payment required.

(a) No sponsor may require a person in this State to pay the sponsor money as a condition of awarding the person a prize, or as a condition of allowing the person to receive, use, compete for, or obtain information about a prize.

(b) A sponsor shall not represent that a person has won or unconditionally will be the winner of a prize or represent that he or she has won a prize, unless all of the following conditions are met:

(1) the person is given the prize without obligation;
(2) the person is notified at no expense to him or her within 15 days of winning the prize; and
(3) the representation is not false, deceptive, or misleading.

(Source: P.A. 92-436, eff. 1-1-02.)

(815 ILCS 525/25)

Sec. 25. Disclosures required. A written promotional prize offer must contain each of the following in a clear and conspicuous statement at the onset of the offer:

(1) the true name or names of the sponsor and the address of the sponsor's actual principal place of business;
(2) the retail value of each prize the person receiving the notice has been selected to receive or may be eligible to receive;
(3) a disclosure that no purchase is necessary to enter such written promotional offer;
(4) a disclosure that a purchase will not improve the person's chances of winning with an entry;
(5) a statement of the person's odds of receiving each prize identified in the notice;
(6) any requirement that the person pay the actual shipping or handling fees or any other charges to obtain or use a prize, including the nature and amount of the charges;
(7) if receipt of the prize is subject to a restriction, a description of the restriction;
(8) any limitations on eligibility; and
(9) if a sponsor represents that the person is a "finalist", has been "specially selected", is in "first place", or 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 in the group or purported group with this enhanced likelihood of receiving a prize.

(Source: P.A. 92-436, eff. 1-1-02.)

(815 ILCS 525/30)

Sec. 30. Prize award required. A sponsor who represents that a person has been awarded a prize shall, not later than 30 days after making the representation, provide the person with:

(1) the prize;
(2) a voucher, certificate, or other document giving the person the prize; or
(3) the retail value of the prize, as stated in the written prize notice, in the form of cash, a money order, or a certified check.

(Source: P.A. 92-436, eff. 1-1-02.)

(815 ILCS 525/32)

Sec. 32. Advertising media exempt. Nothing in this Act creates liability for acts by the publisher, owner, agent, or employee of a newspaper, periodical, radio station, television station, cable television system, or other advertising medium arising out of the publication or dissemination of a solicitation, notice, or promotion governed by this Section unless the publisher, owner agent, or employee had knowledge that the solicitation, notice, or promotion violated the requirements of this Section, or had a financial interest in the solicitation, notice, or promotion.

(Source: P.A. 92-436, eff. 1-1-02.)

(815 ILCS 525/35)

Sec. 35. Exemptions. This Act does not apply to solicitations or representations in connection with:

(1) the sale or purchase of books, recordings, video cassettes, periodicals, and similar goods through a membership group or club that is regulated by the Federal Trade Commission under Code of Federal Regulations, Title 16, part 425.1, concerning the use of negative option plans by sellers in commerce;
(2) the sale or purchase of goods ordered through a contractual plan or arrangement such as a continuity plan, subscription arrangement, or a single sale or purchase series arrangement under which the seller ships goods to a consumer who has consented in advance to receive the goods and after the receipt of the goods is given the opportunity to examine the goods and to receive a full refund of charges for the goods upon return of the goods in an undamaged condition;
(3) sales by a catalog seller;
(4) the State lottery created and regulated under the Illinois Lottery Law;
(5) the sale or purchase of membership camping contracts in accordance with the Illinois Membership Campground Act; or
(6) the sale or purchase of time-shares created and regulated under the Illinois Real Estate Time-Share Act.

(Source: P.A. 92-436, eff. 1-1-02.)

(815 ILCS 525/40)

Sec. 40. Violations.

(a) Nothing in this Act may be construed to permit an activity otherwise prohibited by law.

(b) Enforcement by consumer. A consumer who suffers loss by reason of any intentional violation of any provision of this Act may bring a civil action to enforce that provision. A consumer who is successful in such an action shall recover the greater of $500 or twice the amount of the pecuniary loss, reasonable attorney's fees, and court costs incurred by bringing such action.

(c) Enforcement by Attorney General or State's Attorney. Violation of any of the provisions of this Act is an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. All remedies, penalties, and authority granted to the Attorney General or State's Attorney by that Act shall be available to him or her for the enforcement of this Act.

(Source: P.A. 92-436, eff. 1-1-02.)

(815 ILCS 525/90)

Sec. 90. Severability. If any provision of this Act or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or application and to this end the provisions of this Act are severable.

(Source: P.A. 92-436, eff. 1-1-02.)

Download our app to see the most-to-date content.