2006 New York Code - Use Of Games Of Chance In Selling Commodities.

 
    §  369-e.  Use  of  games  of  chance in selling commodities. 1. Every
  person, firm or corporation proposing to engage in any game, contest  or
  other  promotion  or  advertising  scheme or plan in connection with the
  promotion, advertising or sale of consumer products  or  services  which
  offers  the  opportunity  to  receive  gifts,  prizes or gratutities, as
  determined by chance, without  any  consideration  therefor,  where  the
  total  announced  value  of  the  prizes  offered  is  in excess of five
  thousand dollars shall file with the secretary of state, at least thirty
  days prior to the commencement of such game, contest or promotion upon a
  form that he shall provide,  a  statement  setting  forth:  the  minimum
  number of participating objects to be made available; the minimum number
  of  prize-winning  objects  that  will  be included in such promotion or
  advertising scheme or plan; the  proportionate  opportunity  of  winning
  prizes;  the minimum value of prizes to be made available; and the rules
  and regulations pertaining to such promotion or  advertising  scheme  or
  plan,  which shall include the period of time and the geographic area to
  be covered by the contest and such other information as the secretary of
  state may, from time to time, require. The non-refundable filing fee  of
  one hundred dollars shall accompany each such statement.
    Failure to file such statement shall be a class B misdemeanor.
    2.  Every  person,  firm  or corporation, engaging in any promotion or
  advertising game or contest of the type set forth in subdivision one  of
  this  section,  shall  cause to be posted in a conspicuous and prominent
  location in every  retail  establishment  offering  the  opportunity  to
  participate  in  such  game  or contest and published in all advertising
  copy used in connection  therewith,  a  statement  showing  the  minimum
  number  and  value of prizes available to be won over a stated period of
  time  and  stated  geographic  area,  and  the  rules  and   regulations
  pertaining  to  such promotion or advertising scheme or plan. Failure to
  cause such posting and publication shall be a class B misdemeanor.
    3. Every person, firm or  corporation  who  manipulates  or  rigs  any
  promotion  or  advertising  scheme  or  plan  of  the  type set forth in
  subdivision one of  this  section  so  that  prize-winning  objects  are
  dispersed to predetermined individuals or retail establishments shall be
  guilty   of   a  class  B  misdemeanor,  provided,  however,  that  this
  subdivision shall not prevent distribution of prize-winning  objects  of
  equal value to retail establishments in a uniform ratio to the number of
  participating objects distributed to those establishments.
    4.  Every  person,  firm  or  corporation engaging in any promotion or
  advertising game or contest of the type set forth in subdivision one  of
  this  section  shall establish and maintain a special trust account in a
  branch of a national or  state  chartered  banking  institution  with  a
  balance sufficient to pay or purchase the total value of prizes offered.
  In  lieu of establishing such trust account, said operator may furnish a
  bond, with sufficient sureties, in an amount equal to the total value of
  all prizes offered; such bond shall be in favor of  the  people  of  the
  state  of  New  York.  A copy of a certificate of deposit indicating the
  balance of said trust account or a copy of  the  surety  bond  shall  be
  filed  with the office of the secretary of state simultaneously with the
  filing of the statement required by subdivision one hereof.  The  monies
  so held in escrow or said surety bond shall at all times equal the total
  amount  of  prizes so offered. The monies may be withdrawn, from time to
  time, in order to pay,  award  or  purchase  prizes  offered  only  upon
  certification  to  the  secretary of state of the names and addresses of
  the winners and the amount or value of the respective prizes.
    5. Every person, firm or corporation  engaging  in  any  promotion  or
  advertising  scheme  or plan of the type set forth in subdivision one of
  this section shall within ninety days following the completion  of  said
  promotion  or  advertising  scheme  or  plan, file with the secretary of
  state a listing of the name and address of each winner  of  every  prize
  having  a value of more than twenty-five dollars, the description of the
  prize  won  by  each  such  person,  and  the  date  when such prize was
  delivered to each such person, and shall maintain  complete  records  of
  such  promotion or advertising scheme or plan for a period of six months
  thereafter.  Failure to file such listing with the secretary of state or
  to maintain such records shall be a class B misdemeanor. A copy of  such
  listing  shall  be furnished, without charge, to any person who requests
  the same from said promoter. Nothing herein shall prohibit a requirement
  that such request must  be  accompanied  by  a  stamped,  self-addressed
  envelope  provided such requirement shall be included in and made a part
  of the rules and regulations filed pursuant to subdivision one  of  this
  section.
    6.  Every  person,  firm  or  corporation  who  prints,  publishes  or
  circulates literature or advertising material, used in  connection  with
  any  promotion  or  advertising  scheme or plan of the type set forth in
  subdivision  one  of  this  section,  which  is  false,   deceptive   or
  misleading, shall be guilty of a class B misdemeanor.
    7.  Every  person,  firm or corporation who coerces a retail dealer to
  participate in any promotion or advertising scheme or plan of  the  type
  set  forth in subdivision one of this section shall be guilty of a class
  B  misdemeanor.  Such  coercion  includes,  but  is  not   limited   to,
  circumstances  in  which  a  course of business conduct extending over a
  period of one year  or  longer  between  a  supplier  and  a  dealer  is
  materially changed, for no legitimate business reason, coincident with a
  failure or refusal of the dealer to participate in such games.
    8. Whenever the attorney general shall have reason to believe that any
  promotion  or  advertising  scheme  or  plan  of  the  type set forth in
  subdivision one of this section is being operated in violation  of  this
  section, he may bring an action in the supreme court, in the name and on
  behalf  of  the  people of the state of New York to enjoin the continued
  operation of such promotion or advertising scheme or plan. An action for
  violation of this section may be instituted by the attorney  general  in
  the name of the people of the state of New York, and in any such action,
  the  attorney  general  shall exercise all of the powers and perform all
  the duties which the district attorney would otherwise be authorized  to
  exercise or to perform therein.