1.1                          A bill for an act 
  1.2             relating to consumer protection; regulating prize 
  1.3             notices and solicitations; prohibiting the imposition 
  1.4             of shipping or handling fees or other fees or charges 
  1.5             to obtain or use a prize; amending Minnesota Statutes 
  1.6             1994, section 325F.755, subdivision 2, and by adding a 
  1.7             subdivision. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1994, section 325F.755, 
  1.10  subdivision 2, is amended to read: 
  1.11     Subd. 2.  [DISCLOSURES REQUIRED.] (a) No sponsor shall 
  1.12  require a person in Minnesota to pay the sponsor money as a 
  1.13  condition of awarding the person a prize, or as a condition of 
  1.14  allowing the person to receive, use, compete for, or obtain 
  1.15  information about a prize, nor shall a sponsor use any 
  1.16  solicitation that creates the reasonable impression that a 
  1.17  payment is required, unless the person has first received a 
  1.18  written prize notice containing the information required in 
  1.19  paragraphs (b) and (c). 
  1.20     (b) A written prize notice must contain each of the 
  1.21  following: 
  1.22     (1) the true name or names of the sponsor and the address 
  1.23  of the sponsor's actual principal place of business; 
  1.24     (2) the retail value of each prize the person receiving the 
  1.25  notice has been selected to receive or may be eligible to 
  1.26  receive; 
  2.1      (3) a statement of the person's odds of receiving each 
  2.2   prize identified in the notice; 
  2.3      (4) any requirement that the a statement that a person in 
  2.4   Minnesota need not pay shipping or handling fees or any other 
  2.5   charges to obtain or use a prize, including the nature and 
  2.6   amount of the charges; 
  2.7      (5) if receipt of the prize is subject to a restriction, a 
  2.8   statement that a restriction applies, and a description of the 
  2.9   restriction; 
  2.10     (6) any limitations on eligibility; and 
  2.11     (7) if a sponsor represents that the person is a "winner," 
  2.12  is a "finalist," has been "specially selected," is in "first 
  2.13  place," or is otherwise among a limited group of persons with an 
  2.14  enhanced likelihood of receiving a prize, the written prize 
  2.15  notice must contain a statement of the maximum number of persons 
  2.16  in the group or purported group with this enhanced likelihood of 
  2.17  receiving a prize. 
  2.18     (c) The information required by paragraph (b) must be 
  2.19  presented in the following form: 
  2.20     (1) the retail value and the statement of odds required 
  2.21  under paragraph (b), clauses (2) and (3), must be stated in 
  2.22  immediate proximity to each identification of a prize on the 
  2.23  written notice, and must be in the same size and boldness of 
  2.24  type as the reference to the prize; 
  2.25     (2) the statement of odds must include, for each prize, the 
  2.26  total number of prizes to be given away and the total number of 
  2.27  written prize notices to be distributed.  The number of prizes 
  2.28  and written prize notices must be stated in Arabic numerals.  
  2.29  The statement of odds must be in the following form: 
  2.30     "....... (number of prizes) out of ....... notices 
  2.31  distributed."; 
  2.32     (3) if a person is required to pay shipping or handling 
  2.33  fees or any other charges to obtain a prize, to be eligible to 
  2.34  obtain a prize, or participate in a contest, the following 
  2.35  statement must appear in immediate proximity to each listing of 
  2.36  the prize in the written prize notice, in not less than 
  3.1   ten-point boldface type:  "YOU MUST PAY $....... TO RECEIVE THIS 
  3.2   ITEM" or "YOU MUST PAY $....... TO COMPETE FOR THIS ITEM," 
  3.3   whichever is applicable; and 
  3.4      (4) a statement required under paragraph (b), clause (7), 
  3.5   must appear in immediate proximity to each representation that 
  3.6   the person is among a group of persons with an enhanced 
  3.7   likelihood of receiving a prize, and must be in the same size 
  3.8   and boldness of type as the representation. 
  3.9      Sec. 2.  Minnesota Statutes 1994, section 325F.755, is 
  3.10  amended by adding a subdivision to read: 
  3.11     Subd. 3a.  [CERTAIN FEES OR CHARGES PROHIBITED.] No sponsor 
  3.12  may require a person in Minnesota to pay shipping or handling 
  3.13  fees or any other charges to obtain or use a prize.