AB 1439, as introduced, Salas. Sweepstakes.
Existing law prohibits certain unfair acts or practices undertaken by, or omissions of, any person in the operation of a contest, as described, including, among other things, misrepresenting the odds of winning any prize or failing to award and distribute all prizes, as specified. A violation of this provision is a misdemeanor.
This bill would make the provision described above applicable to unfair acts or practices undertaken by, or omissions of, any person in the operation of a sweepstakes, as defined. The bill would also prohibit using any method intended to be used by a person interacting with a gambling-themed or simulated gambling electronic video monitor in a business establishment that directly or indirectly implements the predetermination of sweepstakes cash, cash-equivalent prizes, or other prizes of value, or otherwise connects a sweepstakes player or participant with sweepstakes cash, cash-equivalent prizes, or other prizes of value. By creating new crimes, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 17539.1 of the Business and Professions
2Code is amended to read:
(a) The following unfair acts or practices undertaken
4by, or omissions of, any person in the operation of any contestbegin insert or
5sweepstakesend insert are prohibited:
6(1) Failing to clearly and conspicuously disclose, at the time of
7the initial contest solicitation, at the time of each precontest
8promotional solicitation and each time the payment of money is
9required to become or to remain a contestant, the total number of
10contestants anticipated based on prior experience and the
11percentages of contestants correctly solving each puzzle used in
12the three most recently completed contests conducted by the person.
13If the person has not
operated or promoted three contests he shall
14disclose for each prior contest if any, the information required by
15this section.
16(2) Failing to promptly send to each member of the public upon
17his request, the actual number and percentage of contestants
18correctly solving each puzzle or game in the contest most recently
19completed.
20(3) Misrepresenting in any manner the odds of winning any
21prize.
22(4) Misrepresenting in any manner, the rules, terms, or
23conditions of participation in a contest.
24(5) Failing to clearly and conspicuously disclose with all contest
25puzzles and games and with all promotional puzzles and games
26all of the following:
27(A) The maximum number of puzzles or games which may be
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necessary to complete the contest and determine winners.
P3 1(B) The maximum amount of money, including the maximum
2cost of any postage and handling fees, which a participant may be
3asked to pay to win each of the contest prizes then offered.
4(C) That future puzzles or games, if any, or tie breakers, if any,
5will be significantly more difficult than the initial puzzle.
6(D) The date or dates on or before which the contest will
7terminate and upon which all prizes will be awarded.
8(E) The method of determining prizewinners if a tie remains
9after the last tie breaker puzzle is completed.
10(F) All rules, regulations, terms, and conditions of the contest.
11(6) Failing to clearly and conspicuously disclose the exact nature
12and approximate value of the prizes when offered.
13(7) Failing to award and distribute all prizes of the value and
14type represented.
15(8) Representing directly or by implication that the number of
16participants has been significantly limited, or that any particular
17person has been selected to win a prize unless such is the fact.
18(9) Representing directly or by implication that any particular
19person has won any money, prize, thing, or other value in a contest
20unless there has been a real contest in which a meaningful
21percentage, which shall be at least a majority, of the participants
22in such contests have failed to win a prize, money, thing, or other
23value.
24(10) Representing directly or by implication that any particular
25person has won any money, prize, thing, or other value without
26disclosing the exact nature and approximate value thereof.
27(11) Using the word “lucky” to describe any number, ticket,
28coupon, symbol, or other entry, or representing in any other manner
29directly or by implication that any number, ticket, coupon, symbol,
30or other entry confers or will confer an advantage upon the recipient
31that other recipients will not have, that the recipient is more likely
32to win a prize than are others, or that the number, ticket, coupon,
33symbol or other entry has some value that other entries do not
34have.
35(12) Using any method intended to be used by a person
36interacting with a
gambling-themed or simulated gambling
37electronic video monitor in a business establishment that directly
38or indirectly implements the predetermination of sweepstakes cash,
39cash-equivalent prizes, or other prizes of value, or otherwise
P4 1connects a sweepstakes player or participant with sweepstakes
2cash, cash-equivalent prizes, or other prizes of value.
3(12)
end delete
4begin insert(13)end insert Failing to obtain the express written or oral consent of
5individuals before their names are used for a promotional purpose
6in connection with a mailing to a third person.
7(13)
end delete
8begin insert(14)end insert Using or distributing simulated checks, currency, or any
9simulated item of value unless there is clearly and conspicuously
10printed thereon the words: SPECIMEN--NONNEGOTIABLE.
11(14)
end delete
12begin insert(15)end insert Representing, directly or by implication, orally or in
13writing, that any tie breaker puzzle may be entered upon the
14payment of money qualifying the contestant for an extra cash or
15any other type prize or prizes unless:
16(A) It is clearly and conspicuously
disclosed that the payments
17are optional and that contestants are not required to pay money,
18except for reasonable postage and handling fees, to play for an
19extra cash or any other type of prize or prizes; and
20(B) Contestants are clearly and conspicuously given the
21opportunity to indicate they wish to enter such phase of the contest
22for free, except for reasonable postage and handling fees the
23amount of which shall not exceed one dollar and fifty cents ($1.50)
24plus the actual cost of postage and which shall be clearly and
25conspicuously disclosed at the time of the initial contest solicitation
26and each time thereafter that the payment of such fees is required.
27The contestants’ opportunity to indicate they wish to enter for free
28shall be in immediate conjunction with and in a like manner as the
29contestants’ opportunity to indicate they wish to play for an extra
30prize.
31(b) For the purposes of this section, “sweepstakes” means a
32procedure, activity, or event, for the distribution, donation, or sale
33of anything of value by lot, chance, predetermined selection, or
34random selection that is not unlawful under other provisions of
35law, including, but not limited to, Chapter 9 (commencing with
36Section 319) and Chapter 10 (commencing with Section 330) of
37Title 9 of Part 1 of the Penal Code.
38(b)
end delete
P5 1begin insert(c)end insert This section does not apply to an advertising plan or program
2that is regulated by, and complies with, the requirements of Section
317537.1.
4(d) Nothing in this section shall be deemed to render lawful any
5activity that is unlawful pursuant to other law, including, but not
6limited to, Section 320, 330a, 330b, 330.1, or 337j of the Penal
7Code.
No reimbursement is required by this act pursuant to
9Section 6 of Article XIII B of the California Constitution because
10the only costs that may be incurred by a local agency or school
11district will be incurred because this act creates a new crime or
12infraction, eliminates a crime or infraction, or changes the penalty
13for a crime or infraction, within the meaning of Section 17556 of
14the Government Code, or changes the definition of a crime within
15the meaning of Section 6 of Article XIII B of the California
16Constitution.
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