HB 883 -- MERCHANDISING PRACTICES OF SWEEPSTAKES PROMOTERS

CO-SPONSORS:  Cierpiot, Howerton

COMMITTEE ACTION:  Voted "do pass" by the Committee on Consumer
Protection and Housing by a vote of 13 to 0.

This bill requires sweepstakes promotions indicating that the
recipient is or may be a winner to state on the same page and in
the same size and type that a purchase of a product or service
will not increase the chances of winning the sweepstakes.
Return envelopes will be provided, and the envelopes will
specify and require that no order forms, donations, or promises
of future purchases be included with the entry form.  The bill
prohibits the use of codes to match entry envelopes with order
form envelopes or their contents.

This bill has penalty provisions.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that sweepstakes companies often use
deceptive and aggressive tactics in order to entice people into
buying merchandise.

Testifying for the bill were Representatives Cierpiot and Black;
and AARP.

OPPONENTS:  Those who oppose the bill say that this is an
interstate commerce issue.  They suggest continuing to monitor
the problem and let the federal government handle the problem.

Testifying against the bill was Direct Marketers' Association.

Donna Schlosser, Legislative Analyst

HB 883 -- Merchandising Practices of Sweepstakes Promoters

Co-Sponsors:  Cierpiot, Howerton

This bill requires sweepstakes promotions indicating that the
recipient is or may be a winner to state on the same page and in
the same size and type that a purchase of a product or service
will not increase the chances of winning the sweepstakes.
Return envelopes will be provided, and the envelopes will
specify and require that no order forms, donations, or promises
of future purchases be included with the entry form.  The bill
prohibits the use of codes to match entry envelopes with order
for envelopes or their contents.

This bill has penalty provisions.