AB 296

This bill eliminates several requirements and prohibitions that apply to a

person who represents that an individual has been selected or may be eligible to

receive a prize. Under current law, a person who represents to an individual that the

individual has been selected or may be eligible to receive a prize is prohibited from

requesting or accepting payment from the individual before the individual receives

a written prize notice that contains certain information, such as the verifiable retail

value of the prize, the odds of receiving the prize, and a description of any

requirement for the individual to view or hear a sales presentation in order to claim

the prize. This bill exempts a person who represents that a uniform prize will be

delivered to each individual who responds and satisfies conditions described in the

representation from that prohibition and those requirements.

The bill also makes the following changes regarding prize notices:

1. Eliminates the prohibition under current law against placing on an envelope

containing a prize notice a representation that the addressee of the envelope has

been selected or may be eligible to receive a prize.

2. Provides that the verifiable retail value of a prize and the odds of receiving

a prize must be stated on the first page of a prize notice. Current law requires the

verifiable retail value and odds of receiving a prize to be stated in the immediate

proximity of each place that the prize appears throughout a prize notice.

3. Eliminates the requirement under current law that the odds of receiving a

prize be stated in the form of the number of prizes awarded out of the total number

of prize notices distributed.

4. Also eliminates the requirement that a description of a restriction that

applies to a prize and a description of a limitation on eligibility for a prize be stated

by using boldface type in a prize notice.