HOUSE BILL No. 4962


     June 14, 2001, Introduced by Rep. Frank and referred to the Committee on Commerce.


        A bill to require certain notices and information disclosure

   in connection with sweepstakes solicitations; to provide reme-

   dies; and to prescribe civil penalties.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 1.  This act shall be known and may be cited as the

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      "sweepstakes solicitation act".

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           Sec. 2.  As used in this act:

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           (a) "Person" means an individual, partnership, corporation,

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      limited liability company, association, or other legal entity.

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           (b) "Solicit" or "solicitation" means to procure or attempt

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      to procure an individual's participation in an activity.

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           (c) "Sweepstakes" means a contest or game in which a prize

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      is distributed by lot or chance and for which a permit or license

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      to operate in this state is not required.




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           Sec. 3.  (1) A person shall not solicit an individual to

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      enter a sweepstakes unless the person does all of the following:

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           (a) If the solicitation is in writing or delivered to the

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      individual personally, provide the individual with the written

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      statement described in subsection (2) at the time of the

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      solicitation.

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           (b) If the solicitation is by telephone, mail to the indi-

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      vidual the written statement described in subsection (2) within

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      24 hours after making the solicitation.

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           (c) If the solicitation is in writing and concealed in an

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      envelope, provide the information described in subsection (2) on

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      the exterior of the envelope.

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           (2) A person who solicits an individual to participate in a

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      sweepstakes shall provide the individual with a written statement

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      that includes all of the following in at least 14-point type:

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           (a) Notice that the recipient of the solicitation is not an

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      actual winner of the sweepstakes.

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           (b) Specification of all costs that the individual may incur

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      by participating in the sweepstakes.

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           (c) Either of the following:

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           (i) A full description of the requirements for becoming a

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      participant in the sweepstakes.

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           (ii) A summary of the requirements for becoming a partici-

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      pant in the sweepstakes and a statement specifying that a full

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      explanation of participation requirements is enclosed in a sepa-

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      rate document.





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           (3) A person who summarizes the requirements for becoming a

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      sweepstakes participant under subsection (2)(c)(ii) shall include

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      with the summary a separate document containing a full explana-

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      tion of participation requirements.

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           (4) An individual injured by a violation of this section may

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      recover his or her actual damages or $1,000.00, whichever is

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      greater.

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           (5) In addition to liability for the remedy described in

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      subsection (4), a person who violates this section is subject to

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      a civil fine of not more than $5,000.00 for each violation.




































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