you see this all the time when companies offer something as a prize.
My question is…why do they say this? They obviously want you to purchase their product …so is there a law that requires them to say this?
In most states, yes, there is a law that says that a company may not require a purchase for someone to have a chance at winning a prize. They can make it difficult (you have to print your name and address on a 3x5" card, mail it someplace, etc.), but they have to provide a way for you to enter the contest without buying anything.
Otherwise, the game would be “gambling” or a “lottery”. So, if No purchase is necessary then you can technically win without spending any money. So it does not count as gambling.
When I feel like being a jackass, I demand a free raffel ticket at various events (any event that would hold a raffel… athletic competitions mainly). When the people are going around selling raffel tickets for 5 or 10 dollars to win whatever, I demand my free ticket. In FL, very few organizations are exempt from the rule. Everyone else trying to raise money by raffel must not REQUIRE purchase of a ticket to have a chance at winning the prize. Course, hardly anyone knows this law. Especially the raffel people.
In Georgia a properly conducted raffle is not subject to the “no purchase necessary” rules and is not considered gambling. In general, only non-profits can hold this type raffle. “No purchase necessary” would kind of ruin the fund raising angle.
“Charitable” or “Non-profit” are the key in FL too. (no pun intended… FL… Key… nevermind). Anyway, I think “very few… are exempt” may have been kinda misleading because there are so many. I’ll retract that sentence if I may, and change it to “So many organizations are not exempt.” When I notice one trying to make money on a raffle, I require my free ticket. I’ve done that at several restaurants and at least one Hockey game. Usually I just do it to mess with them… I don’t keep the ticket or even care about the drawing.
Ok… I really need to get some sleep. I can’t even keep my thoughts straight. Just disregard my last post entirely. And with that, I’m going to bed!!
I will clear my mess up now:
Only Charitable or nonprofit agencies may hold raffles. They have to be Federal tax exempt and the requirement they must meet while having a raffle is to make sure the following is disclosed:
“a) The rules governing the conduct and operation of the drawing.
(b) The full name of the organization and its principal place of business.
© The source of the funds used to award cash prizes or to purchase prizes.
(d) The date, hour, and place where the winner will be chosen and the prizes will be awarded, unless the brochures, advertisements, notices, tickets, or entry blanks are not offered to the public more than 3 days prior to the drawing.
**(e) That no purchase or contribution is necessary. **”
(From FL. SS. 849.035 Bolding mine of course) I thought there was a list of some agencies that were even exempt from this rule. I know the state lottery is of course. But ISTR a conversation where we determind the National Guard was allowed to have one at their ball. Or maybe I won that bet and they were NOT allowed to, but they did it anyway. I don’t remember now. Time for sleepy.
Yes, Doctor Jackson, if everyone knew this law and actually took advantage of it, the fund raiser would be much less effective. Thank god only jerks like me bring it up. “No, Id rather not donate money for the children’s hospital. But I really want to win that drawing for the signed Hockey Stick! So hand over a free ticket” Man… that’s just evil.