New York General Business Code § 369-E

Use of games of chance in selling commodities
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§ 369-e. Use of games of chance in selling commodities. 1. Every\nperson, firm or corporation proposing to engage in any game, contest or\nother promotion or advertising scheme or plan in connection with the\npromotion, advertising or sale of consumer products or services which\noffers the opportunity to receive gifts, prizes or gratutities, as\ndetermined by chance, without any consideration therefor, where the\ntotal announced value of the prizes offered is in excess of five\nthousand dollars shall file with the secretary of state, at least thirty\ndays prior to the commencement of such game, contest or promotion upon a\nform that he shall provide, a statement setting forth: the minimum\nnumber of participating objects to be made available; the minimum number\nof prize-winning objects that will be included in such promotion or\nadvertising scheme or plan; the proportionate opportunity of winning\nprizes; the minimum value of prizes to be made available; and the rules\nand regulations pertaining to such promotion or advertising scheme or\nplan, which shall include the period of time and the geographic area to\nbe covered by the contest and such other information as the secretary of\nstate may, from time to time, require. The non-refundable filing fee of\none hundred dollars shall accompany each such statement.\n  Failure to file such statement shall be a class B misdemeanor.\n  2. Every person, firm or corporation, engaging in any promotion or\nadvertising game or contest of the type set forth in subdivision one of\nthis section, shall cause to be posted in a conspicuous and prominent\nlocation in every retail establishment offering the opportunity to\nparticipate in such game or contest and published in all advertising\ncopy used in connection therewith, a statement showing the minimum\nnumber and value of prizes available to be won over a stated period of\ntime and stated geographic area, and the rules and regulations\npertaining to such promotion or advertising scheme or plan. Failure to\ncause such posting and publication shall be a class B misdemeanor.\n  3. Every person, firm or corporation who manipulates or rigs any\npromotion or advertising scheme or plan of the type set forth in\nsubdivision one of this section so that prize-winning objects are\ndispersed to predetermined individuals or retail establishments shall be\nguilty of a class B misdemeanor, provided, however, that this\nsubdivision shall not prevent distribution of prize-winning objects of\nequal value to retail establishments in a uniform ratio to the number of\nparticipating objects distributed to those establishments.\n  4. Every person, firm or corporation engaging in any promotion or\nadvertising game or contest of the type set forth in subdivision one of\nthis section shall establish and maintain a special trust account in a\nbranch of a national or state chartered banking institution with a\nbalance sufficient to pay or purchase the total value of prizes offered.\nIn lieu of establishing such trust account, said operator may furnish a\nbond, with sufficient sureties, in an amount equal to the total value of\nall prizes offered; such bond shall be in favor of the people of the\nstate of New York. A copy of a certificate of deposit indicating the\nbalance of said trust account or a copy of the surety bond shall be\nfiled with the office of the secretary of state simultaneously with the\nfiling of the statement required by subdivision one hereof. The monies\nso held in escrow or said surety bond shall at all times equal the total\namount of prizes so offered. The monies may be withdrawn, from time to\ntime, in order to pay, award or purchase prizes offered only upon\ncertification to the secretary of state of the names and addresses of\nthe winners and the amount or value of the respective prizes.\n  5. Every person, firm or corporation engaging in any promotion or\nadvertising scheme or plan of the type set forth in subdivision one of\nthis section sh

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