Definitions.

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  • (1) "Division" means the Division of Consumer Protection in the Department of Commerce.
  • (2) "Prize" means a gift, award, or other item or service of value.
  • (3)
    • (a) "Prize notice" means a notice given to an individual in this state that satisfies all of the following:
      • (i) is or contains a representation that the individual has been selected or may be eligible to receive a prize; and
      • (ii) conditions receipt of a prize on a payment or donation from the individual or requires or invites the individual to make a contact to learn how to receive the prize or to obtain other information related to the notice.
    • (b) "Prize notice" does not include:
      • (i) a notice given at the request of the individual; or
      • (ii) a notice informing the individual that he or she has been awarded a prize as a result of his actual prior entry in a game, drawing, sweepstakes, or other contest if the individual is awarded the prize stated in the notice.
  • (4) "Solicitor" means a person who represents to an individual that the individual has been selected or may be eligible to receive a prize.
  • (5) "Sponsor" means a person on whose behalf a solicitor gives a prize notice.
  • (6) "Verifiable retail value" of a prize means:
    • (a) a price at which the solicitor or sponsor can demonstrate that a substantial number of the prizes have been sold by a person other than the solicitor or sponsor in the trade area in which the prize notice is given; or
    • (b) if the solicitor or sponsor is unable to satisfy Subsection (6)(a), no more than 1.5 times the amount the solicitor or sponsor paid for the prize.




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