2016 Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 7 - Consumer Protection
Chapter 102 - Prize Promotion
§ 4-102-104. Exemptions

(a) Nothing in this chapter creates liability for the acts by the publisher, owner, agent, or employee of a newspaper, periodical, radio station, television station, cable television station system, or other advertising medium arising out of the publication or dissemination of a solicitation, notice, or promotion governed by this chapter, unless the publisher, owner, agent, or employee had knowledge that the solicitation, notice, or promotion violated the requirements of this chapter, or had a financial interest in the solicitation, notice, or promotion.

(b) (1) This chapter does not apply to sponsors of prize promotions where all prizes are awarded absolutely for free and there is no opportunity for the payment of money from the person to the sponsor or any agent of the sponsor.

(2) The fact that a prize promotion makes provision for entry into the contest or eligibility for the prize without any payment does not exempt the prize promotion or its sponsor from the provisions of this chapter where the prize promotion requires, or creates the reasonable impression of requiring, or allows the person to pay, any money as a condition of receiving, or in conjunction with allowing the person to receive, use, compete for, or obtain a prize or information about a prize.

(3) If the prize promotion provides any opportunity for any payment by the person to the sponsor for any reason, regardless of whether such payment is required, and regardless of how such payment is denominated, this exemption shall not apply.

(c) This chapter does not apply to solicitations or representations in connection with:

(1) The sale or purchase of books, recordings, videocassettes, periodicals, and similar goods through:

(A) A membership group or club which is regulated by the Federal Trade Commission pursuant to 16 C.F.R. Part 425.1 concerning the use of negative option plans by sellers in commerce; or

(B) (i) The sale or purchase of such goods through a contractual plan or arrangement such as a continuity plan, subscription arrangement, or a single sale or purchase series arrangement under which the seller ships such goods to a consumer who has consented in advance to receive the goods and, after the receipt of the goods, is given the opportunity to examine the goods and to receive a full refund of charges for the goods upon return of the goods undamaged within a reasonable period of time.

(ii) Provided, that the return and refund privilege shall be clearly and conspicuously disclosed to the consumer in the original contact with the consumer, whether oral or written.

(iii) If the consumer elects to return the product for a refund, the seller shall process the refund within thirty (30) days after the receipt of the returned merchandise by the consumer.

(iv) In addition to the return and refund privilege, the consumer may cancel the plan, arrangement, subscription, or purchase series at any time by notifying the seller. After the seller receives the cancellation notice, any further products, not already in transit, sent to the consumer shall be considered a gift to the consumer which the consumer may keep without further obligation, and for which gift the seller shall not bill the consumer; or

(2) (A) Sales by a catalogue seller.

(B) For purposes of this section, "catalogue seller" shall mean any entity and its subsidiaries, or person, at least fifty percent (50%) of whose annual revenues are derived from the sale of products sold in connection with the distribution of catalogues of at least twenty-four (24) pages, which contain written descriptions or illustrations and sale prices for each item of merchandise and which are distributed in more than one (1) state with a total annual distribution of at least two hundred fifty thousand (250,000).

(d) Any willful failure of a seller claiming exemption under subsection (c) of this section to comply with all of the terms of the exemption shall render a claim of exemption void, and such seller shall be bound to fully comply with the provisions of this chapter.

(e) This chapter does not apply to pari-mutuel wagering on horse racing and greyhound racing permitted and regulated by Arkansas law.

(f) This chapter does not apply to prize promotions that appear in a magazine, newspaper, or other periodical if the prize promotions are not directed to a named individual or if the prize promotions do not include an opportunity to make a payment or order a product or service.

(g) The solicitations or representations exempted from the coverage of this chapter in subsection (c) of this section shall be exempt only if:

(1) The information specified in § 4-102-106(b) is clearly and conspicuously set forth or contained in the rules for any solicitation which includes entry materials for a sweepstakes;

(2) The notification and steps to deliver a prize are commenced within thirty (30) days of a prize award; and

(3) A prize is not available, the sponsor complies with the provisions set out in § 4-102-107(1) or (2).