(a) It shall be unlawful to notify a person that he or she will receive a gift, prize, or item of value that has a condition of receiving the gift, prize, or item of value, the requirement to pay any money or purchase or lease, (including rent) any goods or services, if any one or more of the following conditions exist:
(1) The shipping charge exceeds:
(i) The cost of postage or the charge of a delivery service in the business of delivering goods of like size, weight and kind, for shipping the gift, prize or item of value being distributed; or
(ii) The exact amount for shipping paid to an independent fulfillment house or an independent supplier, either of which is in the business of shipping goods for shippers other than the offeror of the gift, prize, or item of value; or
(2) The handling charge exceeds the lesser of five dollars ($5.00) or the actual cost of handling.
(b) This section shall apply to all offers of prizes, gifts, or items of value covered by this chapter.
History of Section.
P.L. 1991, ch. 276, § 1.