Form Dos-255 - Games Of Chance Registration - Nys Department Of State Page 2

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SECTION 369-e, GENERAL BUSINESS LAW — Use of games of chance in selling commodities
Secretary of State simultaneously with the filing of the
1.
Every person, firm or corporation proposing to
statement
required by subdivision one hereof. The monies so
, contest or other promotion or advertising
engage in any game
held in escrow or said surety bond shall at all times equal the
scheme or plan in connection with the promotion, advertising or
total amount of prizes so offered.
The monies may be with-
sale of consumer products or services
which offers the oppor-
drawn, from time to time, in order to pay, award or pur-
, as determined by
tunity to receive gifts, prizes or gratuities
chase prizes offered only upon certification to the Secre-
chance, without any consideration therefor,
where the total an-
tary of State of the names and addresses of the winners
nounced value of the prizes offered is in excess of $5,000
.
and the amount or value of the respective prizes
shall file with the Secretary of State, at least 30 days prior
to the commencement of such game, contest or promotion
5.
engaging in any
Every person, firm or corporation
upon a form that shall be provided
, a statement setting forth:
promotion or advertising scheme or plan of the type set forth in
the minimum number of participating objects to be made
subdivision one of this section
shall within 90 days following
available; the minimum number of prizewinning objects that will
or advertising scheme or
the completion of said promotion
be included in such promotion or advertising scheme or plan;
plan,
file with the Secretary of State a listing of the name
the proportionate opportunity of winning prizes; the minimum
and address of each winner of every prize having a value
value of prizes to be made avail-able; and the rules and regula-
of more than $25, the description of the prize won by each
tions pertaining to such promotion or advertising scheme or
such person, and the date when such prize was delivered
plan, which shall include the period of time and the geographic
to each such person, and shall maintain complete records
area to be covered by the contest and such other information as
of such promotion or advertising scheme or plan for a
the Secretary of State may, from time to time, require. The non-
. Failure to file such listing with
period of 6 months thereafter
refundable filing fee of one hundred dollars shall accompany
the Secretary of State or to maintain such records shall be a
each such statement. Failure to file such statement shall be a
Class B Misdemeanor.
A copy of such listing shall be
furnished, without charge, to any person who requests the
Class B Misdemeanor.
same from said promoter
. Nothing herein shall prohibit a
2.
engaging in any
Every person, firm or corporation
requirement that such request must be accompanied by a
promotion or advertising game or contest of the type set forth in
stamped, self-addressed envelope provided such requirement
subdivision one of this section,
shall cause to be posted in a
shall be included in and made a part of the rules and regulations
conspicuous and prominent location in every retail estab-
filed pursuant to subdivision one [of this section].
in such game
lishment offering the opportunity to participate
or contest and published in all advertising copy used in connec-
6. Every person, firm or corporation who prints, publishes
tion therewith,
a statement showing the minimum number
or circulates literature or advertising material, used in connection
and value of prizes available to be won over a stated period
with any promotion or advertising scheme or plan of the type set
of time and stated geographic area, and the rules and
forth in subdivision one of this section, which is false, deceptive
regulations pertaining to such promotion or advertising
or misleading, shall be guilty of a Class B Misdemeanor.
scheme or plan
. Failure to cause such posting and publication
7. Every person, firm or corporation who coerces a retail
shall be a Class B Misdemeanor.
dealer to participate in any promotion or advertising scheme or
3. Every person, firm or corporation who manipulates or
plan of the type set forth in subdivision one of this section shall
rigs any promotion or advertising scheme or plan of the type set
be guilty of a Class B Misdemeanor. Such coercion includes, but
forth in subdivision one of this section so that prize-winning
is not limited to, circumstances in which a course of business
objects are dispersed to predetermined individuals or retail
conduct extending over a period of one year or longer between
establishments shall be guilty of a Class B Misdemeanor,
a supplier and a dealer is materially changed, for no legitimate
provided, however, that this subdivision shall not prevent
business reason, coincident with a failure or refusal of the dealer
distribution of prize-winning objects of equal value to retail
to participate in such games.
establishments in a uniform ratio to the number of participating
8. Whenever the Attorney General shall have reason to
objects distributed to those establishments.
believe that any promotion or advertising scheme or plan of the
4.
engaging in any
Every person, firm or corporation
type set forth in subdivision one of this section is being operated
promotion or advertising game or contest of the type set forth in
in violation of this section, he may bring an action in the
subdivision one of this section
shall establish and maintain a
Supreme Court, in the name and on behalf of the people of the
in a branch of a national or state char-
special trust account
State of New York to enjoin the continued operation of such
tered banking institution with a balance sufficient to pay or
promotion or advertising scheme or plan. An action for violation
purchase the total value of prizes offered. In lieu of estab-lishing
of this section may be instituted by the Attorney General in the
such trust account, said operator may furnish a bond, with
name of the people of the State of New York, and in any such
sufficient sureties, in an amount equal to the total value of all
action, the Attorney General shall exercise all of the powers and
prizes offered; such bond shall be in favor of the people of the
perform all the duties, which the District Attorney would
State of New York.
A copy of a certificate of deposit
otherwise be authorized to exercise or to perform therein.
indicating the balance of said trust account
or a copy of the
surety bond shall be filed with the office of the Secretary

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