Form 3401 - Telephone Solicitation Registration Statement Page 4
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7C. When the seller represents or implies, or directs salespersons to represent or imply, to the
purchaser that the purchaser will receive a specific item, including a certificate that the purchaser
must redeem to obtain the item described in the certificate, or one or more items from among
designated items, whether the items are denominated as gifts, premiums, bonuses, prizes, or
otherwise, provide:
1. A list of the items described;
2. The value of each item and the basis for the valuation;
3. The price paid by the seller to its supplier for each item and the name, address, and
telephone number of each item's supplier;
4. All rules, regulations, terms and conditions a purchaser must meet in order to receive the
item.
D. If a purchaser is to receive fewer than all of the items identified by a seller as described in (C),
state:
1. the manner in which the seller decides which item a particular purchaser is to receive;
2. for each item, the odds of a single purchaser's receiving the item; and
3. the name and address of each recipient who has received, during the preceding 12
months, or if the seller has not been in business that long, during the period the seller has
been in business, the items having the greatest value and the item with the smallest odds of
being received.
E. If a seller is offering an item that the seller neither manufactures nor supplies, provide the name,
address, and telephone number of each of the seller's suppliers and a description of each item
provided by the supplier.
F. If the possession of the item is to be retained by the seller or will not be transferred to the
purchaser until the purchaser has paid in full, provide the address of each location where the item
will be kept.
G. If an item described in (F) is not kept on premises owned by the seller or at an address listed on
#8 or #9 of this form:
1. state the name of the owner of the business at which the item will be kept; and
2. provide a copy of any contract or other document that evidences the seller's right to store
the item at the address given in (F) above.
H. If the seller is not selling the item from its own inventory but purchases the item to fill an order
already taken from a purchaser, attach copies of all contracts or other documents evidencing the
seller's ability to call on suppliers to fill the seller's order;
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