H.B. 484

1

SWEEPSTAKES CONNECTED WITH THE SALE OF
2 CONSUMER PRODUCTS OR SERVICES
3 2011 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Melvin R. Brown
6 Senate Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill enacts a provision regulating a sweepstakes in connection with a consumer
11 transaction.
12 Highlighted Provisions:
13 This bill:
14 . enacts the Sweepstakes Regulation Act;
15 . requires the operator of a sweepstakes to register with the Division of Consumer
16 Protection;
17 . establishes requirements relating to sweepstakes rules and conditions;
18 . establishes requirements applicable to a sweepstakes; and
19 . establishes civil and criminal penalties for violating provisions applicable to a
20 sweepstakes.
21 Money Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 None
25 Utah Code Sections Affected:
26 ENACTS:
27 13-48-101, Utah Code Annotated 1953

28 13-48-102, Utah Code Annotated 1953
29 13-48-201, Utah Code Annotated 1953
30 13-48-202, Utah Code Annotated 1953
31 13-48-203, Utah Code Annotated 1953
32 13-48-204, Utah Code Annotated 1953
33 13-48-301, Utah Code Annotated 1953
34 13-48-302, Utah Code Annotated 1953
35
36 Be it enacted by the Legislature of the state of Utah:
37 Section 1. Section 13-48-101 is enacted to read:
38 CHAPTER 48. SWEEPSTAKES REGULATION ACT
39 Part 1. General Provisions
40 13-48-101. Title.
41 This chapter is known as the "Sweepstakes Regulation Act."
42 Section 2. Section 13-48-102 is enacted to read:
43 13-48-102. Definitions.
44 As used in this chapter:
45 (1) "Consumer transaction" has the same meaning as defined in Section 13-11-3 .
46 (2) "Division" means the Division of Consumer Protection created in Section 13-2-1 .
47 (3) "Operator" means a person who promotes, operates, or conducts a sweepstakes.
48 (4) "Sweepstakes" means a contest or promotion:
49 (a) conducted in the state in connection with a consumer transaction; and
50 (b) in which a person may participate without making a purchase or paying an entry
51 fee.
52 Section 3. Section 13-48-201 is enacted to read:
53 Part 2. Provisions Governing Sweepstakes
54 13-48-201. Prohibited acts.
55 It is unlawful for an operator:
56 (1) to promote, operate, or conduct a sweepstakes in which the winner is
57 predetermined;
58 (2) to remove, disqualify, disallow, or reject a sweepstakes entry that complies with the

59 rules and conditions of the sweepstakes;
60 (3) to fail to award a prize offered if claimed by a lawful winner;
61 (4) to print, publish, or circulate sweepstakes literature or advertising material that is
62 false, deceptive, or misleading; or
63 (5) to refuse to permit a person to participate in the sweepstakes because the person has
64 not made a purchase or paid an entry fee.
65 Section 4. Section 13-48-202 is enacted to read:
66 13-48-202. Sweepstakes registration.
67 (1) At least seven days before the commencement of a sweepstakes, an operator shall
68 register with the division on a form established by the division.
69 (2) A completed registration form under Subsection (1) shall be accompanied by:
70 (a) a $100 registration fee;
71 (b) a copy of the sweepstakes rules and conditions;
72 (c) a list of each prize with a value exceeding $250 to be offered in the sweepstakes;
73 and
74 (d) the odds of winning each prize listed under Subsection (2)(c).
75 (3) The division shall deposit all registration fees collected under this section in the
76 Commerce Service Account created in Section 13-1-2 .
77 Section 5. Section 13-48-203 is enacted to read:
78 13-48-203. Sweepstakes rules and conditions.
79 (1) An operator may not change sweepstakes rules and conditions after submitting
80 them to the division with a registration form under Subsection 13-48-202(1).
81 (2) An operator shall:
82 (a) conspicuously post the sweepstakes rules and conditions in each retail outlet or
83 location where the sweepstakes is conducted or where the public may participate in the
84 sweepstakes; and
85 (b) subject to Subsection (3), publish the sweepstakes rules and conditions in all
86 advertising materials used in connection with the sweepstakes.
87 (3) An advertising material used in connection with a sweepstakes need include only a
88 summary of material sweepstakes rules and conditions if the material includes an Internet
89 address, a toll-free telephone number, or a mailing address where the full rules and conditions

90 may be viewed, heard, or obtained during the entire time that the sweepstakes is conducted.
91 (4) A radio or television advertisement or announcement concerning a sweepstakes
92 may indicate that the sweepstakes rules and conditions are available at retail outlets or from the
93 operator.
94 Section 6. Section 13-48-204 is enacted to read:
95 13-48-204. Duty to maintain list of winners.
96 (1) For at least a year following the conclusion of a sweepstakes, an operator shall
97 maintain a list of the name and address of each person who wins a prize with a value of more
98 than $250 and the value of each of those prizes won.
99 (2) An operator shall provide a copy of a list under Subsection (1) to any person who,
100 within 30 days after the conclusion of the sweepstakes, makes a written request.
101 (3) If a participant in a sweepstakes is in possession of a game piece from which the
102 participant may determine that the participant has won a designated prize, an operator is not
103 required to notify the winner by mail or telephone.
104 (4) An operator shall hold all winning entries in a sweepstakes for at least 30 days after
105 the conclusion of the sweepstakes.
106 (5) A participant in a sweepstakes who wins a prize shall claim the prize within 30
107 days after the conclusion of the sweepstakes.
108 Section 7. Section 13-48-301 is enacted to read:
109 Part 3. Enforcement
110 13-48-301. Action to enjoin noncomplying sweepstakes -- Misdemeanor.
111 (1) If the division has reason to believe that a sweepstakes is being operated in
112 violation of this section, the division may bring an action in the district court of the judicial
113 district in which the sweepstakes is being operated against the operator of the sweepstakes to
114 enjoin the continued operation of the sweepstakes.
115 (2) An operator who engages in an act in violation of this section:
116 (a) is guilty of a class B misdemeanor;
117 (b) is liable for a civil penalty of not more than $1,000 for each violation; and
118 (c) is subject to an administrative fine imposed by the division in an amount not to
119 exceed $2,500 per violation.
120 Section 8. Section 13-48-302 is enacted to read:

121 13-48-302. Sweepstakes in compliance is not gambling.
122 A sweepstakes registered and operated as provided in this section is conclusively
123 presumed not to violate Title 76, Chapter 10, Part 11, Gambling.




Legislative Review Note
as of 2-16-11 1:59 PM

Office of Legislative Research and General Counsel