Promoters — Prohibited Acts

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  1. No promoter shall misrepresent directly or by implication:
    1. That any person is sponsoring, endorsing, or participating in the sale of any coupon;
    2. That the promoter is an employee or agent of any person sponsoring, endorsing, or participating in the sale of any coupon or coupon book;
    3. That the coupon is not sold for profit or that the price charged for a coupon is solely or primarily to cover actual costs incurred by the promoter in the printing, distribution, or sale of the coupon; or
    4. The name, address, or identity of the promoter or of the person or organization whom the promoter represents.
  2. No promoter shall represent, directly or by implication, that:
    1. Proceeds from the sale of any coupon will be donated to any charity, civic or religious group, or other nonprofit organization, unless such representation is true, and the amount to be donated is disclosed;
    2. An offer is being made to specially selected persons or that the buyer or prospective buyer has been specially selected, unless such representation is true and the specific basis on which such representation is made is concurrently disclosed to the prospective buyer; or
    3. A survey, test, contest, or research project is being conducted, when in fact the principal objective is to sell coupons or coupon books or to obtain prospects for coupon sales.
  3. No promoter shall:
    1. Sell, offer to sell, or otherwise distribute any coupon in violation of any provisions of this part;
    2. Make any representation inconsistent with or contrary to the terms and conditions contained in any coupon or in the agreement between the promoter and sponsor;
    3. Advertise or otherwise represent that a coupon has a stated monetary value or will enable the purchaser or holder to save a stated amount of money, without disclosing in connection with such advertisement the total amount which must be paid by the purchaser or holder for the coupon and the total amount of all purchases which must be made by the purchaser or holder as a condition of redemption of the coupon; or
    4. Use the name, trade name, or trademark of any person to aid in the sale or promotion of the sale of coupons unless the promoter has entered into a written agreement with the person whose name, trade name, or trademark is being used as required under this part.


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